OCC Unveils Proposed Stablecoin Rules Under GENIUS Act

• The OCC framework sets standards for domestic and foreign payment stablecoin issuers.

• Issuers must hold one-to-one liquid reserves and redeem tokens at par within two business days.

• The agency will coordinate with the Federal Reserve and Federal Deposit Insurance Corporation on final rules.

The Office of the Comptroller of the Currency released a proposed rule Wednesday to implement the GENIUS Act. The proposal outlines federal oversight for payment stablecoin issuers operating in the United States. The rulemaking opens a 60-day public comment period and sets early compliance expectations for eligible domestic and foreign issuers.

OCC Lays Out Stablecoin Oversight Scope

According to Eleanor Terrett, the OCC proposal defines supervision standards for permitted and foreign payment stablecoin issuers. The framework also covers specific custody activities conducted by OCC-supervised entities. Notably, the proposal does not include Bank Secrecy Act, AML, or OFAC requirements.

The OCC stated those provisions will follow in a separate rulemaking. That effort will occur in coordination with the Department of the Treasury. Meanwhile, the agency emphasized that stablecoins qualify as legally permissible payment tools under federal banking law.

Reserve, Redemption, and Risk Standards Defined

The 376-page proposal clarifies which issuers fall under OCC jurisdiction. These include national bank subsidiaries, federal qualified issuers, state qualified issuers, and foreign stablecoin firms. Each category must meet standards aligned with the GENIUS Act.

Reserve rules require one-to-one backing with identifiable, highly liquid assets. Additionally, issuers must redeem stablecoins at par within two business days. Capital and liquidity requirements would vary case by case, depending on issuer risk profiles.

The proposal also mandates a principles-based risk management framework. That includes controls for cybersecurity, operational transitions, and third-party relationships. According to the OCC, these measures support safe issuance and custody practices.

Rulemaking Timeline and Interagency Coordination

Comptroller Jonathan V. Gould said the proposal aims to support stablecoin growth while preserving safety and soundness. He added that public feedback will inform a practical final rule. The OCC confirmed ongoing coordination with other regulators.

Those agencies include the Federal Reserve, the Federal Deposit Insurance Corporation, and the National Credit Union Administration. Together, they will implement remaining GENIUS Act provisions.

The GENIUS Act became law in July 2025. Its effective date is January 18, 2027, or 120 days after final rules, whichever comes first.