The Office of the Comptroller of the Currency has proposed draft rules to implement the GENIUS Act, the first federal stablecoin framework. The proposal launches a 60-day comment period and outlines a regulatory regime for payment stablecoin issuance, reserves, and supervision, with the rules expected to take effect by January 2027 at the latest.
The Office of the Comptroller of the Currency on Wednesday proposed rules to implement the GENIUS Act, laying out how payment stablecoins would be issued and supervised. The agency announced a 60-day public comment period in a notice of proposed rulemaking to determine oversight for issuance, backing, and potential shutdowns.
The law prohibits anyone other than a “permitted payment stablecoin issuer” from issuing a payment stablecoin in the U.S. It also bars digital asset service providers from offering non-compliant stablecoins to U.S. users. “The regulations effectively bring the industry into the traditional finance world with significant oversight and connectivity with the banking industry,” said Musheer Ahmed, founder of Finstep Asia.
The draft covers reserve asset standards, mandatory redemption at par, and liquidity controls. It also introduces a “capital and operational backstop” and amends existing capital rules.
The OCC said it will have regulatory authority over certain permitted issuers, including subsidiaries of national banks. “In addition, the OCC will have regulatory authority over foreign payment stablecoin issuers,” the proposal states, potentially pulling offshore issuers into federal oversight.
Bank Secrecy Act and sanctions rules will be addressed separately with the Treasury Department. The regime takes effect the earlier of 18 months after enactment or 120 days after final regulations are published.
Last August, banking groups warned Congress that third-party yield offerings on stablecoins could trigger major deposit flight. OCC Chief Jonathan Gould has previously dismissed fears of a sudden deposit crisis, stating any material flight “would not happen in unnoticed fashion.”
Ahmed noted regulated stablecoins could be “potentially safer than traditional banks” in stress events due to 100% reserve mandates. He suggested in an extreme scenario, support would come via the underlying reserve assets like U.S. Treasuries.
