OCC proposes GENIUS Act rules for U.S. stablecoin issuers

The Office of the Comptroller of the Currency (OCC) proposed rules to implement the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act and opened a 60-day public comment period. The plan sets a federal framework for U.S. payment stablecoin issuers and details oversight, reserve, redemption, capital and risk-management standards.

Outlined in a 376-page proposal, the rulemaking explains how the OCC would supervise payment stablecoin issuers and clarifies which entities fall under its authority. The agency indicated that matters tied to other laws, including the Bank Secrecy Act, will be addressed in a separate rulemaking.

The draft defines the OCC’s jurisdiction to include certain issuers, such as subsidiaries of national banks or federal savings associations, federal qualified payment stablecoin issuers, state qualified payment stablecoin issuers, and foreign stablecoin issuers operating in the United States. It describes examination processes and the standards issuers must meet to offer and maintain payment stablecoins.

Reserve requirements would mandate at least one-to-one backing with identifiable, highly liquid assets. Capital and liquidity standards would be set case by case based on an issuer’s risk profile, with reviews considering business model, balance sheet composition and operational resilience.

Redemption rules would require issuers to redeem stablecoins at par within two business days in most circumstances. The proposal also outlines a principles-based risk management framework addressing operational transitions, cybersecurity protections and third-party risk oversight, with documentation and controls scaled to the issuer’s size and complexity.

The OCC described the effort as part of a coordinated approach with the Federal Reserve, the Federal Deposit Insurance Corporation and the National Credit Union Administration to implement the GENIUS Act through joint rulemaking. Under the statute, the Act becomes effective on the earlier of 18 months after enactment (Jan. 18, 2027) or 120 days after the primary regulators issue final regulations.

“The OCC has given thoughtful consideration to a proposed regulatory framework in which the stablecoin industry can flourish in a safe and sound manner,” Comptroller of the Currency Jonathan V. Gould noted in the agency’s statement.