What is happening between US banks and stablecoin firms like Agora?

Major US banks are pushing to delay the rollout of the GENIUS Act, a new stablecoin law, while Agora is moving forward with plans to operate under it. The conflict highlights growing competition between traditional banks and crypto firms. It centres on who will control digital dollar infrastructure.

Why do banks want to delay the GENIUS Act?

Banks are asking for longer public comment periods to assess risks and prepare. Their main concern is that stablecoins could disrupt their business model. Specifically, they fear losing customer deposits to crypto alternatives.

What is the GENIUS Act and why is it important?

The GENIUS Act is a US law that creates a federal framework for stablecoin issuers. It requires them to operate under bank-like regulations. This could legitimise stablecoins but also increase compliance costs.

What is Agora trying to do with a bank charter?

Agora has applied for a national trust bank charter with the OCC. This would allow it to issue stablecoins directly under federal oversight. It positions the company to compete directly with traditional banks.

What is “deposit flight” and why does it matter?

Deposit flight refers to customers moving money out of banks into alternatives like stablecoins. If users can earn higher yields through stablecoins, banks may lose a key funding source. This could impact lending and profitability.

How do banks currently make money from deposits?

Banks typically pay low interest rates on deposits and invest those funds to earn higher returns. The difference is called the “spread.” Stablecoins could reduce this advantage if they pass returns directly to users.

Why are stablecoins seen as a threat to banks?

Stablecoins can offer faster payments, global access, and potentially higher yields. This makes them attractive compared to traditional bank accounts. If widely adopted, they could reduce banks’ role in the financial system.

What is Agora’s long-term strategy?

Agora plans to build a full financial stack, including stablecoin issuance, custody, and compliance services. The goal is to bring businesses on-chain without requiring them to understand crypto. This focuses on seamless integration.

Banks seek delay as Agora pushes stablecoin charter

Written by Liezl GambePublished May. 1 2026Last Updated May. 1 2026

Major US banks are seeking to delay implementation of the GENIUS Act, urging regulators to extend public comment periods as stablecoin rules take shape.

The push comes as crypto firm Agora accelerates plans to secure a national trust bank charter, aiming to issue stablecoins under federal oversight.

Agora CEO Nick van Eck said resistance from banks was expected, calling the legislation one of the most significant shifts in modern banking.

The core dispute centres on deposit economics, with banks concerned that stablecoin issuers could attract funds by passing yield directly to users, threatening traditional profit models.

Van Eck argued that stablecoins could disrupt the current system where banks benefit from low deposit rates while earning higher returns elsewhere.

Under the GENIUS Act, stablecoin issuers would need to operate under bank-like regulation, raising compliance standards but also opening the door to broader adoption.

Agora plans to expand beyond issuance into custody and compliance services, positioning itself to build a full-stack financial platform as competition between banks and crypto firms intensifies.