Latest developments: Banking groups want regulators to put the brakes on the introduction of the genius bill.
- Major U.S. banks have asked for an extended public comment period before full implementation.
- Agora CEO Nick van Eck said the move was “not surprising” and called the law one of the most important in banking history.
- Van Eyck expects efforts to slow the process to continue next year as banks assess the risks to their business models
Read between the lines: The battle centers on the economics of deposits and yields.
- Van Eyck believes that if stablecoin issuers can pass on rewards to users, what banks are really worried about is “deposit outflow”
- He said traditional banks currently profit from the spread between near-zero deposit rates and higher returns from the Federal Reserve.
Why it’s important: A unified federal framework could reshape American finance.
- Van Eyck says state power will promote innovation and global dollar adoption
- The Genius Act would require stablecoin issuers to operate as banks, raising barriers to entry
- The outcome could determine whether cryptocurrency companies or traditional banks dominate digital dollar infrastructure
Take a closer look: Agora is betting on banking licenses to compete.
- The company applied for a national trust banking license from the OCC last week and plans to receive approval before the end of the year.
- Charter will allow Agora to directly issue stablecoins under federal supervision
- Direct issuance could eliminate “huge fees” in fiat-to-crypto in/out lanes, Van Eck says
What happens next: Agora is looking at a broader financial stack.
- The company plans to expand its business scope from issuance to custody, compliance and infrastructure services
- Van Eck said the goal is to allow businesses to “go on-chain without them knowing,” emphasizing seamless integration
