OCC Lays Out Framework for Regulated Stablecoins Under GENIUS Act
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by Vismaya VFebruary 26, 2026
AI-Generated Deep Dive Summary
The Office of the Comptroller of the Currency (OCC) has introduced a comprehensive framework for regulated stablecoins under the GENIUS Act, aiming to establish clear guidelines for their issuance and supervision within the U.S. The proposal restricts the issuance of payment stablecoins to "permitted" issuers, ensuring compliance with stringent financial regulations. Key aspects include reserve requirements, liquidity controls, audits, and supervisory examinations, which will apply to both domestic and foreign entities seeking access to the U.S. market.
The framework mandates that permitted issuers maintain 100% reserves for redemptions, enhancing transparency and reducing risks associated with stablecoins. It also introduces a capital and operational backstop, requiring issuers to meet specific financial standards. Additionally, the OCC will oversee foreign issuers operating in the U.S., bringing them under federal supervision and ensuring adherence to AML and sanctions rules, which will be addressed separately.
This proposal signifies a significant shift towards integrating stablecoins into traditional finance, potentially making them safer than traditional banks during stress events. The GENIUS Act's implementation is expected to foster innovation by enabling regulated stablecoins for tokenized TradFi use cases, such as yield-bearing products and lending services. However, the absence of immediate AML and sanctions rules means ongoing discussions with the Treasury Department are crucial.
The framework's impact on the crypto market is substantial, as it could accelerate the adoption of compliant stablecoins while curbing risks associated with unregulated offerings. By aligning stablecoin issuers with traditional banking standards, the OCC aims to create a safer, more transparent financial ecosystem. This move not only attracts institutional investors but also sets a precedent for global cryptocurrency regulation.
The GENIUS Act will take effect by January 2027 or sooner if regulations are finalized faster. The OCC's framework emphasizes safety and oversight, addressing concerns about deposit flight and market stability. By integrating stablecoins into the traditional banking
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Originally published on Decrypt on 2/26/2026