Latest developments: Banking groups want regulators to slow down the deployment of the Genius Act.
- Major U.S. banks have requested extended public comment periods before full implementation.
- Nick van Eck, CEO of Agora, said the move was “not really a surprise,” calling the law one of the most important in the history of the banking industry.
- Van Eck expects efforts to slow the process to continue over the next year as banks assess the risks to their business models.
Read between the lines: The fight focuses on deposits and yield economics.
- Van Eck argued that the real concern for banks is “deposit leakage” if stablecoin issuers can pass on rewards to users.
- Traditional banks are currently taking advantage of the gap between near-zero deposit rates and the Fed’s higher yields, he said.
Why it’s important: A unified federal framework could reshape American finance.
- Van Eck said a national regime would spur innovation and adoption of the dollar globally.
- The Genius Act would require stablecoin issuers to operate like banks, raising the bar for entry.
- The outcome could determine whether crypto companies or traditional banks dominate the digital dollar infrastructure.
Take a closer look: Agora is banking on a banking charter to compete.
- The company filed a national trust bank charter with the OCC last week, aiming to gain approval by the end of the year.
- A charter would allow Agora to issue stablecoins directly under federal supervision
- Van Eck said direct issuance could eliminate “huge fees” in fiat-to-crypto on/off ramps.
What comes next: Agora envisions a broader financial stack.
- The company plans to expand beyond issuance into custody, compliance and infrastructure services.
- Van Eck said the goal is to put companies “on chain without them knowing,” with an emphasis on seamless integration.
