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OCC Proposes Sweeping Stablecoin Issuer Rules Under the GENIUS Act

The move opens a 60-day comment window that begins the interagency process to finalize U.S. stablecoin oversight.

Overview

  • The proposal would bar issuance by anyone other than a permitted payment stablecoin issuer, extending OCC approval and supervision to banks, qualifying nonbanks, and certain foreign issuers.
  • A new 12 CFR Part 15 outlines standards for issuance, reserves, redemption at par within two business days, risk management, audits, reporting, and examinations.
  • The draft sets a minimum $5 million capital floor for new issuers and requires tailored liquidity and operational safeguards, including cybersecurity and third‑party risk controls.
  • To enforce the statutory ban on yield, the OCC proposes a rebuttable presumption against funneling interest to holders through affiliates or related third parties.
  • In parallel and next steps, the OCC finalized a rule on national trust banks’ nonfiduciary activities, the FDIC plans a follow‑up proposal, the Federal Reserve is expected to issue related rules, and Treasury will tackle BSA/AML and sanctions later.