Summary
The Office of the Comptroller of the Currency (OCC) is issuing a notice of proposed rulemaking to implement the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act regarding the issuance of payment stablecoins and certain related activities by entities subject to the OCC’s jurisdiction.
Note for Community Banks
The proposed rule would apply to national banks and their subsidiaries, Federal savings associations and their subsidiaries, Federal branches and their subsidiaries, foreign payment stablecoin issuers, nonbank entities that seek to be or are approved as Federal qualified payment stablecoin issuers, and State qualified payment stablecoin issuers for whom the OCC has regulatory or enforcement authority pursuant to the GENIUS Act.
Highlights
- The proposed rule addresses all of the regulations the OCC is required to promulgate under the GENIUS Act other than those related to the Bank Secrecy Act, anti-money laundering, and Office of Foreign Assets Control sanctions, which will be addressed in a separate rulemaking in coordination with the Department of the Treasury.
- The majority of the GENIUS Act OCC rules will be addressed in a new 12 CFR 15, which will include standards and requirements related to the following:
- Activities
- Reserve assets
- Redemption
- Risk management
- Audits, reports, and supervision
- State qualified payment stablecoin issuers transitioning to the federal regulatory framework
- Custody
- Applications and registrations for permitted payment stablecoin issuers subject to OCC jurisdiction
- Examination and supervision of foreign issuers
- Revocation or recission of approval of a permitted payment stablecoin issuer in certain instances
- Capital and operational backstop
- The proposed rule also revises the capital adequacy standards in 12 CFR 3, prompt corrective action regulations in 12 CFR 6, assessment of fees in 12 CFR 8, and rules of practice and procedure in 12 CFR 19.
- The OCC seeks comment on all provisions of the proposed rule and aspects of the proposed regulatory framework.
Background
The GENIUS Act was enacted on July 18, 2025. It establishes a regulatory framework for payment stablecoin activities. The GENIUS Act generally prohibits any person other than a permitted payment stablecoin issuer from issuing a payment stablecoin in the United States. The act further prohibits digital asset service providers from offering or selling a payment stablecoin to a person in the United Stated unless the issuer is a permitted payment stablecoin issuer or the issuer is a foreign payment stablecoin issuer that meets certain requirements. The act also sets forth various regulatory and licensing requirements for permitted payment stablecoin issuers and foreign payment stablecoin issuers.
The OCC will have regulatory or enforcement authority over certain permitted payment stablecoin issuers, including subsidiaries of national banks or Federal savings associations, Federal qualified payment stablecoin issuers, and State qualified payment stablecoin issuers subject to the OCC’s regulatory or enforcement authority under section 4 or 7 of the GENIUS Act (12 USC 5903 and 5906). In addition, the OCC will have regulatory authority over foreign payment stablecoin issuers. The notice of proposed rulemaking generally sets forth, and seeks comment on, the regulations that would apply to permitted payment stablecoin issuers and foreign payment stablecoin issuers under the OCC’s jurisdiction as well as certain custody activities conducted by OCC-supervised entities.
The GENIUS Act’s effective date is the earlier of 18 months after the enactment date (July 18, 2025) or 120 days after the primary Federal payment stablecoin regulators issue final regulations implementing the GENIUS Act.
Further Information
Please contact Daniel Borman, Counsel, or Mark O’Horo, Special Counsel, Chief Counsel’s Office, at (202) 649-5490; or David Stankiewicz, Director, Office of Financial Technology, Office of the Chief National Bank Examiner, 202-649-5473
Adam J. Cohen
Senior Deputy Comptroller and Chief Counsel
