U.S. banks seek to slow stablecoin rollout as Agora pursues federal charter

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US banks seek stablecoin delay

Highlights

Major U.S. banking groups are urging regulators to extend public comment periods as the Genius Act stablecoin rules near implementation, signaling significant industry pushback.
Agora filed for a national trust bank charter last week, targeting approval by year-end to issue stablecoins directly under OCC oversight and remove costly fiat-to-crypto on/off-ramp fees.
Banks fear large stablecoin issuers could drive deposit flight by passing through yield advantages, threatening traditional earnings models and accelerating structural shifts in U.S. financial infrastructure.

Regulatory pushback and Agora's charter plan

As reported by CoinDesk, major U.S. banking groups are urging regulators to extend public comment periods before the Genius Act is fully rolled out, reflecting growing resistance as stablecoin rules move closer to implementation.

Agora CEO Nick van Eck says the effort is not surprising and describes the law as one of the most significant developments in modern banking. He expects banks to keep trying to slow the process over the next year as they evaluate the risks stablecoins could pose to their existing business models.

Agora is moving in the opposite direction. The company filed for a national trust bank charter with the Office of the Comptroller of the Currency last week and is targeting approval by the end of the year, a step that would allow it to issue stablecoins directly under federal oversight.

Van Eck says direct issuance could remove what he calls egregious fees in fiat-to-crypto on- and off-ramps, potentially giving federally supervised issuers a stronger position in digital payments and settlement services.

Deposits, yields and the wider financial impact

The dispute centers on how stablecoins could affect deposit flows and earnings across the banking sector. Van Eck argues that banks are primarily worried about deposit flight if stablecoin issuers are allowed to pass rewards through to users, weakening a longstanding model in which banks benefit from the spread between low deposit rates and higher returns parked at the Federal Reserve.

A unified federal regime could also have broader consequences for U.S. finance. Van Eck says a national framework would support innovation and strengthen global adoption of the dollar, while the Genius Act's bank-style requirements for issuers would raise the threshold for market entry and help determine whether crypto firms or traditional lenders control the digital dollar infrastructure.

Agora is also planning to expand beyond issuance into custody, compliance and infrastructure services. Van Eck says the longer-term goal is to help businesses move on-chain without having to navigate the underlying complexity directly.

Our earlier coverage of negotiations over the Digital Asset Market Clarity Act explained how the bill in the Senate has been delayed by disagreements over stablecoin rewards and their potential threat to banks’ deposit franchises. We outlined Senator Thom Tillis’ comments that revised language is addressing banking-sector concerns, while noting that limited Senate calendar time and remaining sticking points could still jeopardize the legislation’s path.

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