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The Office of the Comptroller of the Currency has released its most detailed stablecoin regulatory proposal to date, setting draft standards for reserves, redemptions, audits, and licensing as it moves to bring payment stablecoin issuers under formal federal banking supervision under the GENIUS Act.
The proposal follows the enactment of the GENIUS Act in July 2025 and represents the federal government’s most detailed effort yet to operationalize the new law. By setting standards for reserves, redemptions, liquidity, audits, and oversight, the OCC is seeking to define how the Genius Act Implementation will function in practice across banks, nonbanks, and certain foreign issuers.
The regulator has opened a 60-day public comment period to refine the draft before finalization. Key areas such as anti-money-laundering (AML), Bank Secrecy Act (BSA), and sanctions compliance will be addressed separately in coordination with the U.S. Department of the Treasury, signaling that the broader Genius Act Implementation process remains ongoing.
At the core of the proposal is a framework to regulate what the OCC terms “permitted payment stablecoin issuers.” These include subsidiaries of national banks, federally qualified issuers, certain state-qualified entities, and foreign stablecoin issuers that meet specified requirements. The structure is designed to ensure that the Genius Act Implementation integrates stablecoins into the existing federal banking system rather than leaving them in a fragmented regulatory environment.
The draft rules establish standards for reserve assets backing stablecoins, mandating that issuers maintain high-quality reserves sufficient to support redemption at par value. They also require clear liquidity and risk management policies, independent audits, supervisory examinations, and defined custody arrangements.
By laying out these operational guardrails, the OCC aims to create a predictable environment for stablecoin issuers operating under federal supervision. The agency’s approach reflects a broader objective of embedding the Genius Act Implementation within established prudential oversight mechanisms, aligning digital asset activity with traditional banking norms.
The OCC’s notice opens a 60-day window for public feedback from industry participants, consumer advocates, and other stakeholders. This consultation phase is a critical part of the Genius Act Implementation, as it allows regulators to adjust technical requirements before issuing final rules.
While the current proposal addresses issuance, reserves, supervision, and redemption, AML and sanctions compliance provisions will be introduced separately. The OCC confirmed that these elements will be developed in coordination with the Treasury Department, ensuring alignment with broader federal financial crime enforcement standards.
Comptroller Jonathan V. Gould framed the proposal as a measured effort to balance innovation with financial stability.
“The proposed framework is designed to help the stablecoin sector flourish in a safe and sound manner,” — Jonathan V. Gould, Comptroller of the Currency, Office of the Comptroller of the Currency.
His remarks underscore the regulator’s intent to ensure that the Genius Act Implementation does not compromise safety and soundness principles central to U.S. banking law.
The GENIUS Act, enacted in July 2025, created a statutory foundation for payment stablecoin regulation after years of debate over how digital assets should be incorporated into federal financial law. The current proposal represents the OCC’s effort to convert that statute into enforceable supervisory standards.
In practical terms, the Genius Act Implementation will determine how stablecoin issuers access the banking system, how they manage customer funds, and how regulators can intervene if compliance standards are breached. The proposal also outlines potential pathways for revoking authorization where issuers fail to meet regulatory expectations.
Industry observers note that this phase of the Genius Act Implementation could shape the competitive landscape for years to come. By clarifying eligibility criteria and supervisory obligations, the OCC may influence which firms — banks, fintechs, or foreign entities — are best positioned to operate in the U.S. stablecoin market.
The proposed framework further establishes application pathways for new entrants seeking federal authorization. These pathways are intended to standardize entry requirements while maintaining oversight consistency. As such, the Genius Act Implementation is not merely about compliance; it also defines the structural boundaries of market participation.
If finalized after the comment period, the rules would mark a significant regulatory milestone, bringing payment stablecoins squarely under federal banking supervision. For policymakers, the initiative reflects an effort to reduce systemic risk while providing regulatory clarity. For issuers, it offers a defined route to legitimacy within the U.S. financial system.
The coming months will determine how stakeholders respond to the draft and whether adjustments are made before final adoption. What is clear, however, is that the Genius Act Implementation now enters a decisive phase — one that could fundamentally reshape the governance of stablecoins in the United States.
