OCC Unveils Proposed Rulemaking to Implement the GENIUS Act: A New Era for U.S. Stablecoin Oversight
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The Office of the Comptroller of the Currency (OCC) took a significant step in shaping U.S. digital asset regulation on February 25, 2026, by issuing a notice of proposed rulemaking (NPRM) to implement the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. The proposal introduces a comprehensive regulatory framework for certain permitted payment stablecoin issuers and opens a 60‑day period for public comment.
As the first federal statute to establish a unified national standard for stablecoins, the GENIUS Act imposes strict requirements on issuance, reserve assets, redemption rights, and supervisory oversight — and it expressly requires the OCC to promulgate regulations implementing these guardrails. The OCC is now proposing detailed rules to fulfill that mandate.
Below is a brief overview of key highlights. Our legal team is currently preparing a more comprehensive analysis of the OCC’s proposal — including interpretive nuances, potential impacts on banks and fintechs, and strategic considerations for market participants — which we will share soon.
Comprehensive Supervisory Framework for Stablecoin Issuers: The NPRM proposes a new 12 CFR Part 15, setting standards for activities, reserve assets, redemption timelines, risk management, audits, reporting, and examinations. It applies to national banks, federal savings associations, qualifying nonbanks, and foreign payment stablecoin issuers under OCC oversight.
OCC PPSI Oversight: Applications to, and approval by, the OCC will be required to issue payment stablecoin for insured national banks, Federal savings associations, and insured Federal branches that seek to issue payment stablecoins through a subsidiary, as well as nonbank entities (e.g., fintechs), uninsured national banks, and uninsured Federal branches that seek to issue payment stablecoins as a Federal permitted payment stablecoin issuer (PPSI).
100% Reserve Backing and Mandatory Redemption: Consistent with the GENIUS Act, issuers must maintain high‑quality liquid assets, such as cash or short‑term Treasuries, and must honor redemption at par within generally two business days, reinforcing consumer protection and stability.
Capital and Operational Requirements: The OCC proposes a minimum $5 million capital floor for new issuers, along with tailored liquidity requirements and rigorous operational risk management standards, including cybersecurity and third‑party oversight.
Yield Prohibition and Anti‑Evasion Measures: To enforce the GENIUS Act’s ban on interest or yield on payment stablecoins, the OCC introduces a rebuttable presumption that issuers are violating the prohibition if they funnel yield through affiliates or related third parties. This aims to prevent circumvention of the statutory ban against paying yield or interest to the holder of stablecoins.
Areas Deferred for Separate Rulemaking: Issues relating to the Bank Secrecy Act, anti‑money laundering obligations, and OFAC sanctions will be addressed in a future joint rulemaking with the Treasury Department.
This proposed rulemaking is only the beginning. With a 60‑day public comment window and coordination expected among federal banking agencies, the regulatory landscape for stablecoins is likely to evolve rapidly in the coming months.
Stay tuned for our forthcoming deep dive.
