OCC Opens 60-Day Comment Period on GENIUS Act Stablecoin Rules

Highlights:

• The GENIUS Act proposal sets clear federal rules for payment stablecoin issuers in the United States.
• Issuers must hold one-to-one liquid reserves and redeem stablecoins at par within two business days.
• The draft addresses the yield dispute and could influence progress on the CLARITY Act.

The Office of the Comptroller of the Currency released a 376-page proposal to implement the GENIUS Act. The agency opened a 60-day public comment period. Lawmakers passed the GENIUS Act in July 2025. The law created the first federal framework for payment stablecoins in the United States.

🇺🇸 JUST IN: The OCC issued a proposed rulemaking to implement the GENIUS Act, seeking public comments on stablecoin regulations.@Cointelegraph pic.twitter.com/3nY1NkFHhR

— currentupdate (@sikandar_r51173) February 26, 2026

Comptroller Jonathan V. Gould said the agency designed the framework to support stablecoin activity under clear safeguards. He stated that stablecoin firms need defined rules to operate responsibly. The proposal explains how issuers must structure reserves, redemptions, and internal controls. It also outlines how the OCC will supervise these firms.

The GENIUS Act allows only permitted payment stablecoin issuers to issue stablecoins in the United States. It also prevents digital asset platforms from offering non-compliant stablecoins to U.S. users. The proposal details how firms must apply for approval. It also explains how regulators may examine and enforce compliance.

The OCC coordinated this draft with other federal regulators. The Federal Reserve, the FDIC, and the NCUA will issue related measures.

Who Falls Under Oversight and What Issuers Must Follow

The proposal defines which companies fall under OCC supervision. The agency will oversee subsidiaries of national banks and federal savings associations as outlined in the GENIUS Act. It will also supervise federally qualified payment stablecoin issuers. Certain state-qualified issuers will fall under its authority as well.

Foreign issuers of stablecoins who want to gain entry into the United States are also required to comply. This provision extends federal control to non-domestic organizations. Companies seeking access to the U.S. market have to comply with the U.S. standards.

The draft imposes one-to-one reserve support on issuers. Every stablecoin should be backed with identifiable and highly liquid assets. In the majority of cases, issuers will be required to redeem stablecoins at par within 2 business days. These regulations are designed to safeguard holders in times of stress.

Stablecoins represent a legally permissible new payment tool. The OCC invites comments on a proposed regulatory framework for payment stablecoins pursuant to the GENIUS Act. More info at https://t.co/fbADAxqP2N. pic.twitter.com/gfwt6AtN7u

— OCC (@USOCC) February 25, 2026

The OCC will establish capital and liquidity requirements depending on the risk profile of each issuer. Stricter requirements may apply to larger or more complex firms. All issuers should also have powerful operational risk controls. The proposal necessitates cybersecurity controls and third-party risk management.

The draft outlines custody standards and independent audit expectations. The OCC will conduct supervisory examinations. It also introduces a capital and operational backstop. In addition, the agency updates capital adequacy and enforcement references to reflect the new framework. Issuers must prepare wind-down plans. Those plans must explain how firms would protect customers if they cease operations.

GENIUS Act Yield Rules and What Happens Next

The proposal addresses the dispute over stablecoin yield. The OCC presumes that issuer-linked yield payments may violate the GENIUS Act. Issuers can submit written materials to show that a specific arrangement does not breach the law. Regulators will review each case individually. The draft clarifies that merchants can continue to provide discounts to users of stablecoins. It also clarifies how profit sharing in white-label collaborations can work within boundaries. Such clauses address issues within the industry.

The yield debate has influenced wider digital asset laws. The legislators have associated the matter with developments concerning the CLARITY Act. According to some industry groups, clear yield rules would eliminate one of the major hurdles.

Banking associations previously warned about possible deposit flight tied to yield structures. Gould dismissed fears of sudden bank runs. He said material shifts would not occur without warning. The White House set a March 1 deadline for banks and crypto firms to resolve yield disputes.

The proposal does not include Bank Secrecy Act or sanctions provisions. The OCC will address those areas in separate coordination with the Treasury Department. The GENIUS Act will take effect by January 18, 2027. Regulators may implement it sooner if they finalize rules within 120 days.