U.S. Crypto Policy Splits as Banks Push Delays While Industry Demands Speed

U.S. crypto regulation is entering a decisive phase, with mounting friction between traditional financial institutions and digital asset firms over both the timing and direction of new rules.

At the center of the divide are two parallel policy tracks: the implementation of stablecoin oversight under the GENIUS Act, and the advancement of broader market structure legislation in Congress.

Banks Seek to Slow Stablecoin Rulemaking

A coalition of major banking groups, including the American Bankers Association and the Bank Policy Institute, has formally requested that U.S. regulators extend public comment periods tied to the GENIUS Act’s implementation.

In a letter addressed to the U.S. Department of the Treasury and the Federal Deposit Insurance Corporation, the groups argued that multiple rulemakings—spanning agencies such as the Office of the Comptroller of the Currency, Financial Crimes Enforcement Network, and the Office of Foreign Assets Control—are deeply interconnected.

According to the banks, key elements of the framework remain contingent on the final rule from the Office of the Comptroller of the Currency, making it difficult to assess the broader regulatory impact without additional time.

They described the effort as a “body of regulatory work of extraordinary scope and complexity,” calling for coordinated evaluation across agencies before finalizing rules.

Stablecoins Become a Regulatory Bottleneck

The GENIUS Act framework, targeted for implementation by 2027, has become a focal point not only for oversight of digital dollars but also for broader tensions between banks and crypto firms.

Banking groups are simultaneously engaged in debates over stablecoin-related provisions within the Digital Asset Market Clarity Act—disputes that have already contributed to delays in advancing the legislation.

At issue are concerns around financial stability, competitive dynamics, and how stablecoins intersect with existing banking infrastructure.

Crypto Industry Pushes for Market Structure Clarity

In contrast, a broad coalition of crypto firms and industry groups is urging lawmakers to accelerate progress on market structure legislation.

In a letter led by the Crypto Council for Innovation and the Blockchain Association, signatories called on the Senate Banking Committee to move forward with a formal markup of the Clarity Act.

The coalition—which includes major players such as Coinbase, Circle, Kraken, Uniswap Labs, Ripple, and Andreessen Horowitz—framed the legislation as critical to maintaining U.S. leadership in digital finance.

The group emphasized that agency guidance alone is insufficient, warning against a return to “regulation by enforcement” and arguing that delays risk pushing innovation, investment, and jobs offshore.

Legislative Momentum Meets Political Friction

Despite signs of progress in negotiations—particularly around issues such as stablecoin-related consumer rewards—lawmakers continue to face multiple unresolved challenges.

These include questions over regulatory jurisdiction between the Securities and Exchange Commission and the Commodity Futures Trading Commission, protections for decentralized technology developers, and the creation of a unified federal framework.

Political dynamics are also complicating the timeline, with broader debates and external factors contributing to delays in Senate action that had initially been expected earlier this year.

Still, some lawmakers have expressed confidence that progress could materialize in the near term, with expectations that market structure legislation could advance as early as the coming months.

What’s at Stake

Delays in stablecoin rulemaking could slow institutional adoption, while prolonged uncertainty around market structure risks pushing activity to jurisdictions with clearer rules.

At the same time, rushed implementation without alignment across agencies could introduce systemic risks—validating some of the concerns raised by the banking sector.

As both sides intensify their efforts, U.S. crypto policy is no longer evolving along a single track. Instead, it is being shaped by competing visions of risk, innovation, and financial control.

The coming months will be critical in determining whether these parallel efforts converge into a unified framework—or continue to move at different speeds, leaving the U.S. navigating a fragmented regulatory landscape.