US Banks Have Three Days Left to Shape GENIUS Act Rules

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Office of the Comptroller of the Currency (OCC) comment rules under the GENIUS Act are entering their final public input window before the May 1 deadline.

The OCC proposal is one of several rulemaking tracks now implementing the GENIUS Act’s federal framework for permitted payment stablecoin issuers. The proposal covers payment stablecoin issuers under the OCC’s jurisdiction, including national banks, federal savings associations, federal branches, certain subsidiaries, nonbank issuers seeking federal approval and foreign issuers supervised by the agency.

OCC Rules Will Shape Federal Stablecoin Oversight

The proposal sets out licensing, supervision, reserve, redemption, risk management and custody standards for firms that want to issue payment stablecoins under OCC oversight. It also covers certain custody activities by OCC-supervised entities.

That matters because the OCC is expected to play a central role in supervising federally approved nonbank stablecoin issuers. Banks are watching closely because the final rules could shape how bank and nonbank stablecoin issuers compete under the federal framework.

Banking Groups Want More Time

Major banking trade groups have asked regulators to slow parts of the implementation process. The American Bankers Association and other groups have pushed for more time to review related proposals from the Treasury Department and the FDIC.

Their concern is mainly about timing. The groups argue that market participants need to see the OCC’s final rule before they can fully judge how other agencies’ GENIUS Act rules will interact with it. The Treasury proposal on ‘substantially similar’ state regimes is open until June 2, while the FDIC and FinCEN-OFAC proposals are open until June 9.

Stablecoin Issuers Face Reserve and Compliance Tests

The GENIUS Act requires payment stablecoin issuers to maintain reserves backing outstanding tokens on at least a one-to-one basis. Eligible reserve assets generally include cash, certain deposits, short-term US Treasury securities and other highly liquid instruments.

Issuers will also face requirements tied to redemption rights, disclosures, operational resilience, Bank Secrecy Act compliance, sanctions controls and supervisory reporting.

For banks, the details could shape how stablecoins fit into existing banking and payments models. For crypto firms, the rules may determine how expensive and difficult it becomes to operate as a federally approved issuer.

Final Rule Will Set Market Boundaries

The May 1 deadline does not finalize the framework. It closes the OCC’s public input period before the agency reviews comments and prepares a final rule. Comments filed now could influence how the OCC defines issuer obligations, supervisory expectations and the relationship between bank and nonbank stablecoin providers.

The final GENIUS Act rules are expected to shape the next phase of US stablecoin competition. Banks have three days left to make their case before one of the most important parts of that framework moves closer to completion.