OCC Lays Out Framework for Regulated Stablecoins Under GENIUS Act

The Workplace of the Comptroller of the Forex on Wednesday proposed guidelines to implement the GENIUS Act, laying out how cost stablecoins can be issued and supervised beneath the company’s jurisdiction.

In a discover of proposed rulemaking issued Wednesday, the OCC mentioned it’s launching a 60-day public remark interval to find out how cost stablecoins are issued, backed, supervised, and doubtlessly shut down beneath federal oversight.

Wednesday’s transfer goals to operationalize the Guiding and Establishing Nationwide Innovation for U.S. Stablecoins (GENIUS) Act, the primary federally established stablecoin framework that handed into regulation final July.



The regulation usually prohibits anybody aside from a “permitted cost stablecoin issuer” from issuing a cost stablecoin within the U.S. and bars digital asset service suppliers from providing non-compliant stablecoins to U.S. customers.

“The rules successfully deliver the business into the normal finance world with vital oversight and connectivity with the banking business,”  Musheer Ahmed, founder and managing director of Finstep Asia, instructed Decrypt.

The U.S. market is anticipated to see a number of “regulated stablecoins from non-banks, funds, and crypto establishments” for “tokenized TradFi use instances.” 

The OCC’s draft covers reserve asset requirements, obligatory redemption at par, liquidity and danger administration controls, audits, supervisory examinations, custody necessities, and software pathways for brand new issuers. 

It additionally introduces a “capital and operational backstop” and amends current capital adequacy and enforcement guidelines.

The company mentioned it “may have regulatory or enforcement authority over sure permitted cost stablecoin issuers,” together with subsidiaries of nationwide banks and federal financial savings associations, Federal certified cost stablecoin issuers, and sure State certified issuers. 

“As well as, the OCC may have regulatory authority over overseas cost stablecoin issuers,” the proposal says, an growth that might pull offshore issuers in search of U.S. entry into federal oversight.

Notably absent are Financial institution Secrecy Act and sanctions guidelines, which the OCC mentioned will probably be addressed individually with the Treasury Division.

The brand new stablecoin regime is anticipated to kick in no later than January 2027, however may start as quickly as 120 days after regulators finalize implementing guidelines, shortening the transition window if rulemaking strikes quicker than the statutory 18-month deadline.

Final August, the banking teams wrote to Congress demanding closure of “a number of loopholes” within the GENIUS Act, warning that third-party yield choices on stablecoins may nonetheless set off main deposit flight.

OCC Chief Jonathan Gould has beforehand dismissed fears of a sudden deposit disaster, telling ABA convention attendees in October that any materials deposit flight “wouldn’t occur in unnoticed vogue” and “wouldn’t occur in a single day.”

To that finish, Ahmed mentioned regulated stablecoins could possibly be “doubtlessly safer than conventional banks” in stress occasions, noting banks function on 10–20% capital ratios whereas stablecoin issuers are mandated to carry 100% reserves for 1:1 redemptions, making them “pretty solvent” if guidelines are maintained.

In an excessive market state of affairs, Ahmed mentioned, “one may say that the lender of the final resort would be the U.S. Fed,” not by instantly backstopping issuers, however by “supporting the underlying property that kind stablecoin reserves — largely US treasuries and money equivalents.”