The Office of the Comptroller of the Currency (OCC) has released draft regulations outlining how payment stablecoins would be issued, backed, and supervised under federal oversight.
The proposal operationalizes the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act), which became effective in July and established the first comprehensive federal framework for stablecoins in the United States.
A 60-day public comment period is now open as regulators seek feedback on how the rules should function in practice.
What the draft rule covers
The proposed framework addresses the entire lifecycle of a payment stablecoin, including:
- Issuance standards
- Reserve asset requirements
- Liquidity and capital controls
- Supervisory examinations
- Audit and reporting obligations
- Wind-down and redemption procedures
Under the proposal, only authorized GENIUS-compliant issuers would be allowed to offer payment stablecoins to U.S. users. Digital asset service providers would be prohibited from listing or distributing non-compliant stablecoins domestically.
100% reserve requirement
One of the most significant provisions is the requirement that payment stablecoins be backed by 100% reserves, ensuring one-to-one redemption at par value.
Reserve assets would need to meet strict standards, including:
- High liquidity
- Low risk
- Custody protections
- Ongoing supervisory review
According to OCC leadership, this 100% backing requirement exceeds traditional bank capital ratios, reinforcing the policy focus on redemption certainty.
In extreme market stress scenarios, reserve assets such as U.S. Treasuries and cash equivalents could potentially benefit from broader Federal Reserve system support, though stablecoins themselves would not receive direct central bank backing.
Expanded oversight authority
The proposal gives the OCC and the National Credit Union Administration (NCUA) direct regulatory authority over:
- Subsidiaries of national banks
- Federal savings associations
- Federally qualified stablecoin issuers
- Certain state-qualified issuers
- Foreign issuers seeking access to U.S. users
This significantly expands federal oversight compared to the previous fragmented regulatory approach.
Bank Secrecy Act (BSA) and sanctions compliance requirements will be addressed separately in coordination with the U.S. Treasury Department.
Industry concerns and regulatory response
Some banking groups have expressed concerns that stablecoins could lead to deposit outflows into yield-generating digital products.
OCC officials responded that any material outflows would likely be visible and gradual rather than sudden. The agency emphasized that strict reserve requirements are designed to mitigate systemic risk.
The framework aims to balance innovation with financial stability allowing regulated digital dollar alternatives while tightening supervisory controls.
Why this matters
The GENIUS Act framework marks a major shift in U.S. digital asset policy.
For the first time, payment stablecoins would operate under a clearly defined federal regime with:
- Defined issuance pathways
- Capital standards
- Liquidity safeguards
- Enforcement authority
If finalized, the rulebook could reshape the competitive landscape for dollar-backed stablecoins, favoring regulated entities capable of meeting strict compliance thresholds.
It also signals Washington’s intent to bring stablecoin infrastructure firmly within the traditional financial oversight system rather than treating it as a parallel market.
