A new committee to review state-level regulatory frameworks for stablecoins must adopt strong, transparent rules before it starts making decisions “that will shape the payment stablecoin market for years to come,” the American Bankers Association and three bankers associations said today in a joint comment.
The Genius Act allows payment stablecoin issuers to choose to be regulated by state-level regimes as long as those regimes are substantially similar to federal regulation. To review state-level regulations, the bill established the Stablecoin Certification Review Committee, which is comprised of the Treasury Secretary and the heads of the federal banking agencies. The SCRC will also determine whether foreign issuers can operate in the U.S., and whether companies “not predominantly engaged” in financial activities may issue stablecoins.
In a letter to regulators, ABA and the other associations recommended the SCRC adopt procedural rules governing all of its determinations before it acts and set out what those rules should require. For example, they recommended the committee establish a rule to formally consult with the Office of the Comptroller of the Currency and National Credit Union Administration before making decisions.
“Weak or opaque procedures risk inconsistent determinations, an inadequate administrative record, and — most consequentially for the banking industry — a payment stablecoin issuer held to a lower effective standard than the one applied to banks under direct federal supervision,” they said. “Strong, durable procedures guard against each of these outcomes.”
