The OCC released a 376-page proposed rule implementing the GENIUS Act, establishing licensing, prudential standards, and activity limits for payment stablecoin issuers. Significantly, the OCC adopts a rebuttable presumption that affiliate or third-party agreements designed to replicate yield violate the statutory ban on interest. The agency is clearly watching for end-runs around the rules. For community banks considering stablecoin issuance, the rule provides a clear federal pathway, which requires a separately capitalized subsidiary and rigorous operational standards — items banks are well equipped to handle.
What you should do: If the bank is exploring digital assets, review the proposal with your compliance team. Understand that while stablecoin issuance is not lightweight, it has benefits that are worth the time to explore and understand. If stablecoins become a standard payments product, any bank would want to be on top of the wave from the customer service and a technological standpoint. Comments are due 60 days after Federal Register publication.
Meanwhile, the FDIC extended the comment period for its similar rule to May 18, giving banks more time to assess. The FDIC requires a detailed letter application, financial projections, and a 120-day decision window. Right on cue, the NCUA proposed its own rule allowing credit unions to issue stablecoins through subsidiaries, mirroring the OCC and FDIC frameworks. All three federal banking regulators are putting weight behind the concept that stablecoins are a legitimate banking product and are here to stay.
OCC: https://www.govinfo.gov/app/details/FR-2026-03-02/2026-04089