TLDR
- The OCC released a 376-page proposal to implement the GENIUS Act.
- The agency opened a 60-day public comment period on the draft rule.
- The proposal defines the OCC’s authority over qualified payment stablecoin issuers.
- Issuers must maintain one-to-one reserves backed by highly liquid assets.
- The OCC will set capital and liquidity standards based on each issuer’s risk profile.
The Office of the Comptroller of the Currency has released a proposed rule to implement the GENIUS Act. The agency opened a 60-day public comment period on the 376-page proposal. The rule outlines how the OCC will supervise payment stablecoin issuers under the new federal framework.
OCC Outlines Regulatory Scope Under GENIUS Act
The proposal outlines the OCC’s responsibilities under the GENIUS Act, which was enacted in July 2025. The agency stated that it had drafted the rules required under the statute. It stated that other obligations, including those under the Bank Secrecy Act, will follow in separate rulemaking.
Comptroller of the Currency Jonathan V. Gould addressed the proposal in a Wednesday statement. He said, “The OCC has given thoughtful consideration to a proposed regulatory framework in which the stablecoin industry can flourish safely and soundly.” He added that the agency aims to support innovation while maintaining oversight standards.
The proposal clarifies the OCC’s jurisdiction over specific categories of issuers. These include subsidiaries of national banks and federal savings associations. The framework also covers federal qualified payment stablecoin issuers, state qualified payment stablecoin issuers, and foreign stablecoin issuers.
The agency explained that it will exercise authority over these entities under the statute. It also stated that the rules align with the requirements set by Congress. The OCC said it intends to ensure consistent supervision across regulated issuers.
Reserve, Capital, and Redemption Standards Detailed
The proposal sets one-to-one reserve requirements for payment stablecoin issuers. Issuers must back stablecoins with identifiable and highly liquid assets. The OCC stated that this standard reflects the statutory mandate.
The rule also introduces tailored capital and liquidity requirements. The OCC said it will determine those requirements on a case-by-case basis. It will assess each issuer’s risk profile before setting standards.
Issuers must redeem stablecoins at par within two business days in general cases. The proposal outlines operational expectations tied to that requirement. The OCC said issuers must maintain sufficient systems to meet redemption timelines.
The agency also requires a principles-based risk management framework. Issuers must address operational transitions, cybersecurity controls, and third-party risk management. The proposal directs firms to implement systems that reflect their size and activities.
The OCC described the rule as part of a coordinated federal effort. Other primary regulators include the Federal Reserve, the Federal Deposit Insurance Corporation, and the National Credit Union Administration. Each agency will issue its own implementing regulations under the statute.
