US Banks Trying to Delay the Genius Act Stablecoin Law

May 1, 2026, 02:343 min read

Genius Act Stablecoin Regulation and Bank Lobbies' Move

Major US banks have requested an extension of the public comment period to prevent the full implementation of the Genius Act. While banking lobbies ask regulators to slow down the process, crypto players like Agora are taking decisive steps. Agora CEO Nick van Eck described the banks' stance as an "expected reaction" and called the law a turning point in banking history. Van Eck predicts that banks will engage in similar delay tactics over the next year to assess impacts on their business models. This tension is deepening the rivalry between Wall Street and the crypto world over stablecoin regulations.

Main Reasons for Banks' Stablecoin Fears

The struggle focuses on deposit flows and yield mechanisms. Van Eck emphasizes that banks' main fear is the erosion of deposits as stablecoin issuers pass yields directly to users. Traditional institutions thrive on the spread between near-zero deposit interest rates and high yields in Federal Reserve reserves.

• Deposit Erosion: Stablecoins attract bank deposits by offering direct yields to users.
• Yield Spread Loss: Banks profit from Fed reserves, which stablecoins bypass.
• Fiat-Crypto Conversion Fees: Agora's application could eliminate these fees.

Agora has applied to the OCC for a national trust bank charter to enter the competition and aims for approval by year-end. This would open the door to issuing stablecoins under federal oversight.

The Future of Genius Act and Crypto Assets Like ALT

The Genius Act forces stablecoin issuers to operate at bank-like standards, making market entry more difficult. Van Eck argues that the federal framework will spur innovation and strengthen the dollar's global use. These developments bring regulatory clarity for crypto assets like ALT detailed analysis, while potentially impacting the ALT futures market. Will crypto firms or banks dominate the digital dollar infrastructure?

Frequently Asked Questions About the Genius Act Stablecoin

What is the Genius Act?

A federal law subjecting stablecoin issuers to bank-like standards.

Why do banks want to delay the law?

They fear deposit losses and disruption to their yield models.

What does Agora's OCC application mean?

It enables federal approval for stablecoin issuance and low-fee fiat-crypto conversions.

How will this law affect the crypto market?

It accelerates innovation with regulatory clarity, strengthening infrastructure for coins like ALT.