OCC Seeks Feedback on GENIUS Act Stablecoin Proposal

The Office of the Comptroller of the Currency is seeking feedback on its proposed framework for implementing the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, signaling the first federal regulatory approach for payment stablecoins in the United States.

Comptroller Jonathan V. Gould said in a Wednesday statement that the proposal reflects “thoughtful consideration” of a regulatory structure designed to allow the stablecoin industry to flourish safely and soundly. The OCC has set a 60-day window for public comment on the 376-page document.

Framework Clarifies Issuer Standards and Oversight

The proposal establishes the OCC’s jurisdiction over a range of stablecoin issuers, including those affiliated with national banks and federal savings associations, federally qualified payment stablecoin issuers, state-chartered issuers, and foreign stablecoin entities. It sets expectations consistent with the GENIUS Act, including requirements for one-to-one backing with highly liquid and identifiable assets, tailored capital and liquidity standards depending on the risk profile of the issuer, and redemption obligations to ensure stablecoins can generally be redeemed at par within two business days.

Issuers are also required to maintain robust, principles-based risk management systems covering operational transitions, cybersecurity, and third-party risks. According to the OCC, these standards are designed to balance innovation with investor protection and financial stability while fostering confidence in federally regulated stablecoins.

Coordinated Rulemaking Across Federal Agencies

The GENIUS Act is being implemented through a coordinated effort among U.S. regulators. Alongside the OCC, the Federal Reserve, Federal Deposit Insurance Corporation, and National Credit Union Administration are involved in issuing complementary rules under their respective authorities. The legislation stipulates that the effective date will be either 18 months after enactment—making it Jan. 18, 2027—or 120 days after the primary regulators issue their final implementing rules, whichever comes first.

Regulatory Significance for Stablecoin Adoption

The OCC’s proposal marks a significant step toward a federal framework for payment stablecoins, providing clarity for issuers and market participants. By defining reserve requirements, risk management standards, and redemption practices, the proposal aims to strengthen investor protection while enabling innovation in the digital asset sector. Market participants and industry observers are watching closely, as the rules will shape how U.S.-based and international stablecoin issuers operate under federal oversight.