SS #94 - Banks Push to Slow GENIUS Act Rollout

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Good morning.

The banking lobby is deploying its Clarity Act playbook on the GENIUS Act, pressing Treasury and the FDIC to freeze stablecoin rulemaking until the OCC finalizes its issuer framework, a procedural delay that conveniently narrows the runway for stablecoin competitors.

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In Today's Edition:

• Headline: Banks Push to Slow GENIUS Act Rollout

• Quick Bites: Global Stablecoin Rulemaking Slows

• Yield of the Week: Smokehouse DAI’s 15.07% APY

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HEADLINE

State of play: A coalition of US bank trade groups is asking Treasury and the FDIC to pause GENIUS Act stablecoin rulemaking until the OCC finalizes its own framework, arguing the rules are too interconnected to evaluate in isolation.

• The American Bankers Association and Bank Policy Institute want comment periods on three GENIUS Act rule proposals extended by at least 60 days after the OCC completes its stablecoin issuer framework.

• Agencies including Treasury's OFAC, FinCEN, and the FDIC are all pursuing stablecoin rules that bankers say are directly contingent on the OCC's final framework, which isn't finished yet.

• The same banking groups are already tangled in a separate dispute with the crypto industry that has delayed the Digital Asset Market Clarity Act for months and threatens its passage this year.

What’s Next: The OCC needs to finalize its stablecoin issuer framework before the broader GENIUS Act ruleset can move forward, with the full package targeting implementation by 2027.

Why it Matters: Banks are effectively using procedural leverage to slow a regulatory regime they didn't write, and every delay narrows the window for stablecoin issuers to operate under clear rules.

Our Take: The request is framed as due diligence but the pattern is obvious: the same groups slowing the Clarity Act are now pulling the same move on GENIUS, and the crypto industry should treat regulatory delay as a competitive threat.

QUICK BITES

• Global stablecoin rulemaking slows.

• Circle tops crypto stocks with 30% gain.

• DoorDash to offer stablecoin payouts with Tempo.

• Infinite rolls out banking services powered by Erebor Bank.

• UK sets out plan to integrate payments rules covering stablecoins.

• TD Cowen flags five hurdles to crypto bill beyond stablecoin yield issue.

• Banks seek to slow down implementation of GENIUS Act on stablecoin.

• Crypto bill nears stablecoin rewards breakthrough as talks hit ‘good spot.’

YIELD OF THE WEEK

Smokehouse DAI: 15.07% APY

• The vault accepts DAI deposits and allocates capital across a wide range of collateral markets on Morpho, with ~$1.67M in total deposits.

• Capital is primarily deployed across three sUSDe/DAI markets at varying LTV tiers (~$1.43M combined at 100% utilization), with a smaller allocation to USDe/DAI at 100% utilization.

• Yield is generated from lending demand across fully utilized sUSDe and USDe collateral markets at 17.06%-17.18% APY, net of a 5% performance fee.

Alpha USDC Delta V2: 22.00% APY

• The vault accepts USDC deposits and deploys capital into delta-neutral strategies targeting funding spreads, basis trades, and market inefficiencies, with ~$5.58M in total deposits and ~$164.83k in available liquidity.

• Capital is fully allocated into a single msY/USDC market at 86% LTV with 100% relative cap, running at near-full utilization with a 24.30% market APY.

• Yield is generated from delta-neutral arbitrage across spot and derivatives markets, with a base vault APY of 21.66% boosted by 0.33% in MORPHO incentives, net of a 10% performance fee and 0% management fee.

Felix USDT0: 10.71% APY

• The vault accepts USDT0 deposits on HyperEVM and supplies liquidity to established, high-liquidity Morpho markets backed by battle-tested collateral, with ~$11.81M in total deposits and ~$927.84k in available liquidity.

• Capital is primarily deployed into kHYPE/USDT0 (~$6.24M at 92.78% utilization) and WHYPE/USDT0 (~$3.9M at 92.55% utilization), with remaining allocations spread across UBTC, PT-kHYPE, wstHYPE, and beHYPE markets.

• Yield is generated from lending demand across high-utilization collateralized markets, with primary market APYs ranging from 12.40% to 14.15%, net of a 10% performance fee.

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