OCC Moves to Operationalize the GENIUS Act With Proposed Stablecoin Rule

Key Takeaways

• Rulemaking Begins: The Office of the Comptroller of the Currency has issued a notice of proposed rulemaking to implement the GENIUS Act, formally beginning the process of translating the statute into supervisory requirements.
• Scope of Oversight: The proposal outlines regulations for permitted payment stablecoin issuers, foreign payment stablecoin issuers under OCC jurisdiction, and certain custody activities conducted by OCC-supervised entities.
• AML and Sanctions to Follow: Requirements related to the Bank Secrecy Act, anti-money laundering, and OFAC sanctions will be addressed in a separate rulemaking coordinated with the Treasury Department.

Deep Dive

The Office of the Comptroller of the Currency has taken a step toward shaping the future of dollar-backed digital assets, issuing a proposed rule to implement the Guiding and Establishing National Innovation for U.S. Stablecoins Act, better known as the GENIUS Act.

The notice of proposed rulemaking, released Tuesday, lays out the regulatory framework that would apply to permitted payment stablecoin issuers and foreign payment stablecoin issuers operating under the OCC’s jurisdiction. It also addresses certain custody activities conducted by OCC-supervised entities.

In announcing the proposal, Comptroller of the Currency Jonathan V. Gould said the agency had given “thoughtful consideration” to how a regulatory framework could allow the stablecoin industry to “flourish in a safe and sound manner.”

“We welcome feedback on the proposal to inform a final rule that is effective, practical and reflects broad industry perspective,” Gould said. He added that the OCC will continue working to implement the GENIUS Act and provide OCC-regulated entities with more opportunities to meet the needs of their customers and communities.

According to the OCC, the proposed rule addresses all regulations the agency is required to promulgate under the GENIUS Act, with one key exception. Provisions related to the Bank Secrecy Act, anti-money laundering requirements, and sanctions administered by the Office of Foreign Assets Control will be addressed in a separate rulemaking. That effort will be coordinated with the Department of the Treasury.

The agency said it will continue coordinating with other federal bodies responsible for implementing aspects of the GENIUS Act, signaling that the stablecoin framework will be shaped through an interagency process.

With the proposal now published, the OCC is seeking public comment before finalizing the rule. Industry participants, financial institutions, and other stakeholders will have the opportunity to weigh in on how the framework should be calibrated, particularly as it applies to payment stablecoin issuers and related custody activities overseen by the OCC.

The rulemaking marks a significant procedural step in translating the GENIUS Act from statute into operational requirements for entities under the OCC’s supervision, setting the stage for how federally regulated institutions may participate in the evolving stablecoin market.

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