Key Points
- A 376-page regulatory proposal has been published by the OCC to operationalize the GENIUS Act.
- Public stakeholders have 60 days to submit comments on the draft framework.
- The document establishes OCC oversight parameters for qualified payment stablecoin issuers.
- Full asset backing with highly liquid reserves on a one-to-one basis is mandatory for issuers.
- Capital and liquidity requirements will be customized according to individual issuer risk assessments.
The Office of the Comptroller of the Currency has published proposed regulations for executing the GENIUS Act. The federal banking regulator initiated a 60-day window for public feedback on the extensive 376-page document. This regulatory framework details the agency’s approach to overseeing payment stablecoin issuers within the newly established federal structure.
Federal Banking Agency Defines Supervisory Authority
The proposal outlines the regulatory duties assigned to the OCC through the GENIUS Act, which became law in July 2025. Agency officials confirmed they have developed the mandatory regulations specified in the legislation. Additional compliance requirements, including provisions related to the Bank Secrecy Act, will be addressed through subsequent regulatory proceedings.
Comptroller Jonathan V. Gould released a statement Wednesday discussing the regulatory approach. He remarked, “The OCC has given thoughtful consideration to a proposed regulatory framework in which the stablecoin industry can flourish safely and soundly.” Gould emphasized the agency’s commitment to fostering innovation alongside maintaining robust supervisory standards.
The proposed framework delineates which stablecoin issuers fall under OCC supervision. Entities subject to oversight include subsidiaries operating under national banks and federal savings associations. Additional covered entities encompass federal qualified payment stablecoin issuers, their state-chartered counterparts, and foreign stablecoin issuers conducting business domestically.
Agency officials emphasized that their regulatory authority derives directly from congressional mandate. The proposed rules mirror the statutory requirements established by lawmakers. The OCC expressed its intention to apply uniform supervisory practices across all regulated entities within its jurisdiction.
Asset Backing and Redemption Protocols Established
The regulatory proposal mandates full reserve backing for every payment stablecoin issued. Backing assets must be readily identifiable and demonstrate high liquidity characteristics. Agency officials noted this standard directly implements congressional requirements.
The framework introduces customized capital and liquidity standards for supervised entities. The OCC indicated these requirements will vary based on individual assessments. Each issuer will undergo risk profiling before receiving specific capital guidelines.
Redemption at par value must occur within two business days under standard conditions. The proposal specifies operational capabilities necessary to fulfill this obligation. Agency officials stated issuers must deploy adequate infrastructure to consistently meet redemption deadlines.
A comprehensive risk management program forms another core requirement. Issuers must address operational continuity planning, cybersecurity protocols, and vendor oversight. The proposal instructs firms to scale their control systems appropriately based on organizational complexity and transaction volumes.
The OCC positioned this rulemaking within a broader interagency regulatory initiative. Additional primary regulators include the Federal Reserve, the Federal Deposit Insurance Corporation, and the National Credit Union Administration. Each supervisory body will publish corresponding implementation rules pursuant to the statute.
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