OCC publishes GENIUS Act NPRM setting comprehensive rules for stablecoin issuers

The Office of the Comptroller of the Currency released a 376-page proposed rule on February 25, 2026, implementing the GENIUS Act as the first federal regulatory framework for payment stablecoins. The proposal establishes comprehensive standards including 100% reserve backing in high-quality liquid assets like cash or short-term Treasuries, a two-business-day redemption window at par, and a $5 million minimum capital floor for new issuers. The framework requires OCC approval for both national banks issuing stablecoins through subsidiaries and nonbank entities seeking federal licenses, while strictly prohibiting yield payments to holders. The 60-day public comment period opens debate on how these rules will reshape the stablecoin market, with future joint rulemakings planned to address Bank Secrecy Act, anti-money laundering, and OFAC sanctions compliance.

OCC's Proposed Regulatory Framework Under the GENIUS Act

• ▪The OCC's proposed 12 CFR Part 15 applies to national banks, federal savings associations, qualifying nonbanks, and foreign payment stablecoin issuers under OCC oversight.
• ▪The Office of the Comptroller of the Currency issued a notice of proposed rulemaking to implement the GENIUS Act on February 25, 2026.
• ▪The OCC's notice of proposed rulemaking proposes a new 12 CFR Part 15 setting standards for stablecoin issuer activities.
• ▪The OCC's proposed rulemaking for the GENIUS Act opens a 60-day period for public comment.

Capital Standards and Operational Risk Management

• ▪The OCC's proposed 12 CFR Part 15 sets standards for stablecoin issuer audits, reporting, and examinations.
• ▪The OCC proposes a minimum $5 million capital floor for new stablecoin issuers.

Yield Prohibition Enforcement and Future Rulemaking

• ▪The OCC will address Bank Secrecy Act obligations for stablecoin issuers in a future joint rulemaking with the Treasury Department.

Perspective of Cryptocurrency industry participants

• ▪The OCC's proposed $5 million minimum capital requirement for stablecoin issuers creates a barrier to entry for smaller fintech companies.

Perspective of Consumer protection advocates

• ▪The GENIUS Act's 100% reserve backing requirement protects stablecoin holders from issuer insolvency risks.

Perspective of Traditional banking institutions

• ▪The OCC's proposed framework allows insured national banks to enter the stablecoin market through approved subsidiaries.

4 sources