OCC Proposes GENIUS Act Framework for Regulating Payment Stablecoins

The Office of the Comptroller of the Currency (OCC) has proposed a new regulatory framework as part of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act). The proposed rule requires that all payment stablecoin issuers maintain 100% reserves for each stablecoin issued and adhere to strict operational standards to comply with federal supervision. The OCC seeks public feedback during a 60-day comment period on the draft regulations that address the entire lifecycle of payment stablecoins, including issuance, reserve management, audits, and wind-down procedures. Per the draft, only authorized issuers would be able to serve U.S. customers, with clear guidelines on capital and liquidity requirements, as well as detailed auditing and custodial processes in place. Additionally, the Bank Secrecy Act and OFAC compliance will be handled in a separate action by the Treasury Department. This move signifies a significant step towards the integration of stablecoins into the U.S. financial system under a standardized and safe regulatory environment.