Banking and Finance Law Daily Wrap Up, FINANCIAL TECHNOLOGY—Groups want more time to file comments on Genius Act proposal for state regime, (May 7, 2026)

By Carrie DeLeon

A group of state bankers associations suggested that the comment deadline be extended to 60 days after the Office of the Comptroller completes its rulemaking implementing the GENIUS Act for entities subject to the OCC’s jurisdiction.

The American Bankers Association and 52 state bankers associations sent a letter to the Treasury Department requesting an extension of the deadline to file comments on a proposed rule to establish the principles that will be used to determine whether a state-level regulatory regime is “substantially similar” to the federal framework, as required by the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. Comments are currently due June 2.

“An extension would work to create the right environment for efficient use of state legislative schedules. Further, it would better allow the undersigned associations, our member institutions, and other interested members of the public to prepare carefully considered and well-informed comments in response to this consequential rulemaking,” the associations said in their letter to Treasury this week.

In support of their request for an extension, the associations pointed out that Treasury’s NPRM on state-level regulatory regimes is directly contingent on the OCC’s final framework, which has not yet been finalized. Comments should therefore be due 60 days the finalization of the OCC GENIUS rule, they said.

“Until the OCC’s rule is final, Treasury’s proposal for assessing state-level regulatory regimes is necessarily provisional, and substantive comment on whether proposed state-level standards meet or exceed the Federal regulatory framework cannot be fully developed,” they said.

The associations further point out the implications for state legislative activity. Because state laws pertaining to state qualified stablecoin issuers must adhere to Treasury’s “substantially similar” architecture, which is dependent on the OCC’s GENIUS regulation, “there is significant risk that the simultaneous action will result in state laws that do not pass muster and would be judged insufficient by the Stablecoin Certification Review Committee,” they said.

“Instead, Treasury must send a strong signal to state legislatures that getting it right is more important than moving quickly to pass laws that might have to be amended later. Rather than rush to an artificial conclusion, it would be better to cultivate a culture of ‘measure twice, cut once’ by creating the necessary conditions for states to legislate in the most productive fashion,” the associations write in their letter. Moreover, having a finalized OCC Genius rule in place when evaluating Treasury’s notice of proposed rulemaking would allow stakeholders to deliver relevant and ripe issues for consideration.”

The associations also request that Treasury clarify that there will be “no penalties incurred for states submitting initial certifications later than 1 year after the GENIUS Act effective date; or alternatively permitting a status report by the 1-year mark.”

Last month, the Treasury Department issued a Notice of Proposed Rulemaking (NPRM) seeking public comment concerning the agency’s implementation of the GENIUS Act (see Banking and Finance Law Daily, Apr. 2, 2026). Under the GENIUS Act, issuers of payment stablecoin with a consolidated total outstanding issuance of not more than $10 billion generally may opt for a state-level regulatory regime so long as the state-level regulatory regime is substantially similar to the federal regulatory framework. The NPRM would implement section 4(c) of the GENIUS Act by establishing broad-based principles for determining when a state-level regulatory scheme is substantially similar to the federal regulatory framework.

Companies: American Bankers Association

RegulatoryActivity: BankingOperations BankSecrecyAct Blockchain CapitalBaselAccords DepositInsurance FederalReserveSystem FinancialIntermediaries FinTech Preemption Privacy PrudentialRegulation SecuritiesDerivatives StateBankingLaws