OCC Lays Out Framework for Regulated Stablecoins Under GENIUS Act
The Office of the Comptroller of the Currency (OCC) has proposed rules to implement the GENIUS Act, establishing the first federal framework for payment stablecoins in the U.S. Only “permitted payment stablecoin issuers” will be allowed to issue stablecoins, and non-compliant offerings will be barred from U.S. access. The OCC’s proposed regulations mandate standards for reserve assets, mandatory 1:1 redemption, liquidity and risk management, audits, custody, and supervisory examinations. They introduce capital and operational safeguards, amend capital adequacy and enforcement rules, and extend OCC authority to certain subsidiaries, state-certified, federal, and foreign issuers seeking U.S. market access. Bank Secrecy Act and sanctions rules will be addressed separately. The regulations are expected to take effect by January 2027, or sooner if finalized quickly. Industry experts suggest these measures will bring stablecoins closer to traditional finance standards, potentially increasing market safety by requiring issuers to hold 100% reserves, in contrast to banks’ lower capital ratios. In extreme crises, the Federal Reserve may indirectly support stablecoin redemption via the assets backing them.
