Federal Stablecoin Rules Move Forward
The Office of the Comptroller of the Currency (OCC) has released a sweeping proposal outlining how it plans to regulate stablecoins under the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act.
The OCC is now inviting public feedback during a 60-day comment period.
The GENIUS Act, signed into law in July 2025, marked the first comprehensive federal framework for payment stablecoins in the United States. The OCC’s latest proposal represents a critical step toward translating that legislation into enforceable regulatory standards.
Scope of OCC Authority
The 376-page draft clarifies the OCC’s jurisdiction under the new law. The regulator would oversee several categories of issuers, including subsidiaries of national banks, federal savings associations, federally qualified payment stablecoin issuers, certain state-qualified issuers, and foreign issuers operating within its authority.
While the proposal focuses on implementing provisions directly tied to the GENIUS Act, the OCC noted that requirements related to other statutes - such as the Bank Secrecy Act - will be addressed separately through additional rulemaking.
This layered regulatory approach reflects a broader government effort involving agencies such as the Federal Reserve, the Federal Deposit Insurance Corporation, and the National Credit Union Administration.
Reserve, Capital, and Redemption Requirements
At the heart of the proposal are strict reserve and liquidity standards. Stablecoin issuers must maintain at least one-to-one backing with clearly identifiable, highly liquid assets. This aligns directly with the GENIUS Act’s requirement for full asset transparency and immediate redeemability.
Issuers would also be required to redeem stablecoins at par value within two business days under normal conditions. Capital and liquidity requirements would be determined on a case-by-case basis, tailored to each issuer’s risk profile rather than imposed as a uniform standard.
Additionally, the proposal mandates a robust, principles-based risk management framework. This includes oversight of operational transitions, cybersecurity safeguards, and third-party service provider risks. The aim is to prevent disruptions that could undermine confidence in dollar-backed digital tokens.
Timeline for Implementation
According to the proposal, the GENIUS Act will take effect on the earlier of 18 months after enactment - January 18, 2027 - or 120 days after regulators finalize the implementing rules.
That timeline means stablecoin issuers have a relatively short runway to prepare for federal compliance. Industry participants are expected to use the 60-day comment window to push for clarity on reserve asset definitions, capital thresholds, and operational reporting standards.
A Turning Point for U.S. Stablecoins
The OCC’s proposal signals that regulated stablecoins are moving from policy theory to structured oversight. For years, stablecoin markets operated in a patchwork environment of state-level licensing and informal federal guidance. The GENIUS Act — and now the OCC’s framework — aims to formalize the sector within the traditional banking regulatory perimeter.
Supporters argue that clear federal rules could accelerate adoption by reducing uncertainty and attracting institutional participation. Critics, however, warn that compliance burdens may limit smaller issuers or consolidate power among large banking entities.
Regardless of the debate, the release of this proposal marks a defining moment in U.S. digital asset regulation. The stablecoin market, long viewed as a bridge between crypto and traditional finance, is now firmly under the federal microscope.
