Banks push to slow stablecoin law as Agora races for charter

Latest developments: Banking groups want regulators to pump the brakes on the Genius Act rollout.

Major U.S. 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 centers on deposits and yield economics.

Van Eck argued banks’ real concern is “deposit flight” if stablecoin issuers can pass through rewards to users

Traditional banks currently profit from the spread between near-zero deposit rates and higher returns at the Fed, he said

Why it matters: A unified federal framework could reshape U.S. finance.

Van Eck said a national regime would boost 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

Closer look: Agora is betting on a bank charter to compete.

The firm filed for a national trust bank charter with the OCC last week, aiming for approval by year-end

A charter would allow Agora to issue stablecoins directly under federal oversight

Van Eck said direct issuance could eliminate “egregious fees” in fiat-to-crypto on/off ramps

What comes next: Agora is eyeing 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 businesses “on-chain without them knowing it,” emphasizing seamless integration