Latest developments: Banking groups want regulators to pump the brakes on the Genius Act rollout.
- Major US banks have asked for extended public comment periods before full implementation.
- Agora CEO Nick van Eck said the move is “not much of a surprise,” calling the law one of the most significant in banking history
- Van Eck expects continued efforts to slow the process over the next year as banks assess risks to their business models
Reading between the lines: The fight is centered on deposit and dividend economics.
- Van Eck argued that banks’ real concern is “deposit flight” if stablecoin issuers can send rewards to users
- Traditional banks are currently profiting from the spread between near-zero deposit rates and higher yields at the Fed, he said
Why it’s important: A unified federal framework can reshape America’s finances.
- Van Eck said a national regime would increase innovation and global dollar adoption
- The Genius Act would require stablecoin issuers to operate as banks, raising the bar for entry
- The outcome could determine whether crypto firms or traditional banks dominate digital dollar infrastructure
Take a closer look: Agora bets on a bank charter to compete.
- The firm applied for a national trust bank charter with the OCC last week, aiming for approval before the end of the year
- A charter would allow Agora to issue stablecoins directly under federal oversight
- Van Eck said direct issuance could eliminate “special fees” in fiat-to-crypto on/off ramps
What comes next: Agora is looking at a broader financial stack.
- The company plans to expand beyond issuance into custody, compliance and infrastructure services
- Van Eck said the goal is to bring companies “on-chain without them knowing it,” with an emphasis on seamless integration
