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