The CEOs of Citigroup, Wells Fargo and Bank of America will meet with senators in an event organized by the Financial Services Forum, Seeking Alpha reported Monday (Dec. 8), citing a statement from the bank trade group.
Topics on the agenda include bank permissibility, payment of interest, and illicit finance, according to the report.
PYMNTS reported Wednesday (Dec. 3) that both in the United States and in other markets and geographies, banks are working to ensure that they play a role in crafting crypto infrastructure despite policy gridlocks.
Global financial institutions have worked on stablecoins, tokenized deposits, bitcoin exchange-traded funds and digital asset treasury solutions this year.
However, regulations have failed to progress in step with the guidance needed for the success of many banks’ announcements. For example, the GENIUS Act regulating stablecoins was enacted on July 18 but has yet to be implemented. Meanwhile, competing drafts of crypto markets regulations have yet to see a floor vote and remain in committee.
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The Financial Services Forum, BPI, the American Bankers Association, the Consumer Bankers Association and The Clearing House Association responded to the Treasury Department’s notice of proposed rulemaking on its implementation of the GENIUS Act in November.
“The GENIUS Act is a major legislative achievement that, if implemented effectively, can strengthen America’s financial competitiveness,” the associations said at the time in a press release, adding that they look forward to engaging with government agencies and regulators throughout the rulemaking process.
PYMNTS reported in November that industry groups have pressed senators to prohibit any yield-related incentives tied to stablecoin holdings, regardless of the corporate separation, and have lobbied the Office of the Comptroller of the Currency and the Federal Reserve to issue guidance discouraging banks from partnering with stablecoin programs that engage in yield-adjacent products.
Traditional banks see early moves by stablecoin issuers as a warning that stablecoin competition could soon reach their core business lines. While the GENIUS Act was designed to protect banking stability while fostering payments innovation, in the interim it may be encouraging the competitive dynamics banks hoped to avoid.
