ABA, Banking Groups Urge Formal Rules for Stablecoin Review Committee

The GENIUS Act established the Stablecoin Certification Review Committee to evaluate state-level stablecoin regulatory regimes; the American Bankers Association and three other banking groups urged the committee to adopt formal procedural rules before it begins issuing determinations.

The GENIUS Act allows payment stablecoin issuers to opt for state-level regulatory regimes if those regimes are deemed substantially similar to federal regulation. To review those state frameworks, the legislation created a committee, composed of the Treasury Secretary and the heads of the federal banking agencies. The legislation also tasked the committee with determining whether foreign issuers may operate in the U.S. and whether companies not predominantly engaged in financial activities may issue stablecoins.

In a joint comment letter, the Associations recommended the committee adopt procedural rules governing all of its determinations before taking action. They asked the committee to establish a formal requirement to consult with the OCC and the National Credit Union Administration prior to making decisions.

The Associations argued that without such rules, the committee risks inconsistent decisions and inadequate administrative records. They said weak or opaque procedures could result in payment stablecoin issuers being held to a lower effective standard than the one applied to banks under direct federal supervision.