Banks push to slow stablecoin law as Agora races for charter
US banks seek to delay stablecoin legislation, while Agora pursues a bank charter to issue stablecoins directly.Summary
Major U.S. banks are advocating for extended public comment periods to slow the implementation of stablecoin legislation, known as the Genius Act. They are concerned about potential "deposit flight" if stablecoin issuers can offer rewards to users, which could impact traditional banks' profits derived from the spread between low deposit rates and higher Federal Reserve returns. Crypto firm Agora, however, is actively pursuing a national trust bank charter from the OCC, aiming for approval by year-end. This charter would allow Agora to issue stablecoins directly under federal oversight, potentially eliminating high fees on fiat-to-crypto transactions and fostering innovation. Agora also plans to expand into custody, compliance, and infrastructure services, with the goal of seamlessly integrating businesses onto the blockchain.
(Source：CoinDesk)