#USOCCIssuesNewStablecoinRules

The Office of the Comptroller of the Currency (OCC) of the U.S. Treasury Department published a notice of proposed rulemaking on February 25, 2026, outlining the implementation of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act). This proposal is a comprehensive 376-page draft detailing the federal oversight framework for institutions issuing payment stablecoins and engaging in specific activities.

The GENIUS Act was enacted in July 2025 and was the first comprehensive federal law regulating stablecoin activities. The OCC's proposal outlines the rules required by the law and will apply to permitted payment stablecoin issuers and foreign stablecoin issuers under OCC jurisdiction. It also covers stablecoin custody activities of institutions under OCC oversight.

Key elements of the proposal include licensing, capital requirements, risk management, operational standards, and custody rules for permitted payment stablecoin issuers. Strict requirements are specifically imposed for reserve assets. Issuing institutions are required to hold identifiable, segregated, and non-commingled reserve assets at a ratio of at least 1:1 to the value of outstanding stablecoins. These assets can be held directly by the institution or held in an eligible financial institution. Eight types of permissible reserve assets are defined, and fair value must always meet the issuance value.

The redemption mechanism is also emphasized. Stablecoin holders should be able to convert their stablecoins to cash at a fixed value, and this process should be secure, fast, and reliable. The proposal also details the prohibition of yield or interest. Issuers of permitted payment stablecoins cannot provide holders with direct or indirect interest or return for holding, using, or storing the stablecoin. Rebuttable presumptions in affiliate or third-party white-label arrangements are attempted to be applied to prohibit such indirect yield arrangements. This rule aims to position stablecoins as cash-like payment instruments rather than investment products.

The OCC is considering and requesting comments on limiting each permitted payment stablecoin issuer to issuing only one brand stablecoin. This could particularly affect models that issue multiple branded stablecoins through white-label platforms. Platforms like Paxos Stripe Bridge or Anchorage may be impacted by this restriction. OCC Chairman Jonathan Gould stated before the Senate Banking Committee that these measures would reduce deposit flight from banks.

A minimum capital threshold of $5 million is proposed for newly established stablecoin issuers. Furthermore, anti-money laundering and Bank Secrecy Act rules will be addressed through separate rulemaking. The proposal covers all regulations imposed on the OCC by the GENIUS Act, except for Bank Secrecy Act AML and OFAC sanctions.

The comment period will last 60 days after publication in the Federal Register. The OCC argues that this proposal will allow the stablecoin sector to grow safely and robustly. If the proposal becomes law, stablecoin issuance in the US will be largely under federal oversight, replacing the current fragmented regulations with a more consistent framework. Developments are being closely followed in the sector.