WASHINGTON — The Office of the Comptroller of the Currency is encouraging community banks to develop payment stablecoin capabilities, days after the agency finalized regulations implementing the federal GENIUS Act.
In a post on X, the OCC said it wants community banks to help shape the future of payments and encouraged interested institutions to consider applying to become permitted payment stablecoin issuers or to establish subsidiaries that could qualify.
“The OCC wants community banks to help shape the future of payments and is encouraging the development of payment stablecoin capabilities within the community banking sector,” the agency said.
The GENIUS Act, signed into law July 18, 2025, created a federal regulatory and licensing framework for payment stablecoins, digital assets designed to maintain a stable value relative to a currency such as the U.S. dollar.
The OCC finalized its implementing rule last Wednesday, establishing requirements for reserves, redemption, custody and risk management. The framework covers bank subsidiaries, federally approved nonbank issuers and certain other providers under the agency’s jurisdiction. The rule takes effect Jan. 18.
Room for Rewards
The final rule also leaves room for cryptocurrency platforms to offer rewards tied to stablecoins, an issue that could intensify competition with bank deposits and potentially affect banks’ lending costs and capacity. The OCC said it would evaluate individual arrangements and that existing rewards programs would not automatically qualify as compliant simply because they predated the law.
Comptroller of the Currency Jonathan V. Gould said in a separate Monday post on X that the rule reflects the agency’s history, dating to its creation in 1863 to help establish a national currency and banking system.
“Implementing the GENIUS Act and overseeing stablecoin issuers is a reminder of our roots and our role enabling financial innovation,” Gould said. “The final rule [OCC] released last week puts a federal framework in place allowing stablecoins to achieve their potential while furthering dollar dominance.”
Part of Broader Effort
The OCC linked its invitation to community banks with its broader effort to adjust regulation and supervision for smaller institutions.
“These opportunities complement the OCC’s Community Bank Comeback initiatives to right-size regulation and tailor supervision so community banks can grow, compete and continue serving their communities,” the agency said.
