ICBA said stablecoin rules should consider the effect on community bank deposits and credit availability in local communities.
Recommendations: In a letter responding to the Treasury Department’s proposed rule to implement section 3 of the GENIUS Act, ICBA said the final rule should:
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Keep bank deposits within the banking regulatory framework.
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Enable community banks to participate in the stablecoin ecosystem.
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Limit and safeguard foreign stablecoin activity.
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Ensure clear accountability for stablecoin claims.
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Protect community bank deposits that fuel local lending.
Background: Treasury in August proposed a rule that would bar entities from issuing payment stablecoins without obtaining a federal or state license. The proposal also seeks to define key terms including "issue" and "located in the United States."
Recent ICBA Advocacy:
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In recent letters to the OCC, federal banking regulators and the National Credit Union Administration, ICBA called for greater interagency coordination on GENIUS Act rulemaking.
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ICBA last month called on the FDIC to adopt a strict payment stablecoin framework.
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ICBA in May urged the OCC to strengthen its proposed GENIUS Act rules to protect against stablecoin risks.
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ICBA and other groups in May called on regulators to recognize and address several key risks in their first report on payment stablecoins.