From reserve requirements to foreign issuer rules, the OCC’s GENIUS Act proposal maps out what a federal stablecoin framework will mean for business payments – and when it takes effect
Eight months after the GENIUS Act was signed into law, the federal framework for payment stablecoins is starting to take shape.
On 25 February 2026, the Office of the Comptroller of the Currency (OCC) issued a notice of proposed rulemaking, which set out the regulations it intends to apply to permitted payment stablecoin issuers and foreign payment stablecoin issuers operating under its jurisdiction.
It marks a significant step in translating the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, signed on 18 July 2025, into enforceable federal rules.
Running to 376 pages, the proposal covers the bulk of what the OCC is required to promulgate under the GENIUS Act.
What the proposal covers
The proposed framework is largely housed in a new section of federal banking regulations – 12 CFR 15 – and is accompanied by amendments to existing capital adequacy standards (12 CFR 3), prompt corrective action rules (12 CFR 6), assessment fees (12 CFR 8), and procedural rules (12 CFR 19).
At its core, the proposal requires:
- Payment stablecoins to be backed on at least a one-to-one basis with identifiable, highly liquid assets.
- Issuers to maintain transparent reserves and redeem stablecoins at par value within two business days in most circumstances.
- Capital and liquidity to be calibrated to each issuer’s risk profile rather than applied uniformly, an approach that recognises the variation in scale and complexity across the stablecoin market.
The OCC’s jurisdiction under the proposal extends to subsidiaries of national banks and federal savings associations, federally licensed nonbank stablecoin issuers, certain state-qualified issuers, and foreign payment stablecoin issuers. Per the GENIUS Act, foreign payment stablecoin issuers must register with the OCC specifically.
In 2025, legal analysis by Latham & Watkins found the inclusion of foreign issuers to be consequential as overseas firms seeking to serve US customers would not only be required to register with the OCC, but also hold sufficient reserves at a US financial institution to meet domestic liquidity demands.
That requirement is likely to draw scrutiny in markets such as the EU, UK, and Asia where separate stablecoin regimes are already developing, given that it applies even where a foreign regime has been assessed as broadly comparable.
The proposal also sets out a principles-based risk management framework, encompassing cybersecurity protections, operational resilience, and third-party risk oversight, with documentation and control expectations scaled to the issuer’s size and complexity.
Comptroller for the OCC, Jonathan Gould, said on its notice of proposed rulemaking: “The OCC has given thoughtful consideration to a proposed regulatory framework in which the stablecoin industry can flourish in a safe and sound manner.
“We welcome feedback on the proposal to inform a final rule that is effective, practical and reflects broad industry perspective. The OCC will continue its work to implement the GENIUS Act and provide OCC regulated entities with more opportunities to meet the needs of their customers and communities.”
However, not everything is addressed in this rulemaking. The OCC has confirmed that requirements tied to the Bank Secrecy Act, anti-money laundering compliance, and Office of Foreign Assets Control (OFAC) sanctions will be handled in a separate rulemaking, developed in coordination with the US Department of the Treasury.
As noted in the Federal Register, the Treasury itself issued an advance notice of proposed rulemaking in September 2025, seeking comment on its own implementing rules – including the process for assessing the comparability of foreign regulatory regimes.
A coordinated federal effort
The OCC’s proposal is but part of a broader interagency implementation effort. The Federal Deposit Insurance Corporation (FDIC) was the first primary regulator to act, publishing proposed rules on 16 December 2025 setting out how eligible banks could apply to issue payment stablecoins through subsidiaries.
The National Credit Union Administration (NCUA) followed on 11 February 2026 with its own notice of proposed rulemaking covering credit union subsidiaries, with a comment period running to 13 April 2026.
The Federal Reserve has yet to publish a formal proposal, and with the clock running, it is currently a notable absence. Per the GENIUS Act, the legislation takes effect on the earlier of 18 months after enactment – placing the date at 18 January 2027 – or 120 days after the primary federal regulators issue their final implementing regulations.
That deadline creates meaningful pressure on agencies to coordinate, because the 120-day clock only starts once all primary regulators have issued final rules. Any significant lag by a single regulator delays the trigger and pushes the effective date towards the statutory backstop of 18 January 2027, compressing the time available for the industry to prepare.
