The Office of the Comptroller of the Currency (OCC) has released a proposed rulemaking to implement the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, a landmark legislation enacted on July 18, 2025, aimed at establishing a federal framework for payment stablecoins. This move seeks to foster innovation in the stablecoin sector while ensuring safety, soundness, and consumer protection.

The 376-page notice of proposed rulemaking (NPRM), published on February 25, 2026, outlines regulations for permitted payment stablecoin issuers, foreign payment stablecoin issuers under OCC jurisdiction, and certain custody activities by OCC-supervised entities. It addresses key areas such as permissible activities, reserve assets, risk management, supervision, examination, custody, and capital requirements, but excludes Bank Secrecy Act (BSA), Anti-Money Laundering (AML), and Office of Foreign Assets Control (OFAC) sanctions, which will be handled in a separate rulemaking coordinated with the Department of the Treasury.

“The OCC has given thoughtful consideration to a proposed regulatory framework in which the stablecoin industry can flourish in a safe and sound manner,” said Comptroller of the Currency Jonathan V. Gould in a statement. “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.”

Under the proposal, issuers must maintain reserves at least equal to the fair value of outstanding stablecoins on a 1:1 basis, using highly liquid, identifiable assets such as U.S. Treasury bills with maturities up to 93 days, demand deposits at insured institutions, and certain repurchase agreements. Reserves must be segregated and held with eligible custodians, with no commingling allowed. Diversification requirements include limits on concentration, such as no more than 40% of reserves at a single institution under one option, and principles-based risk management for credit, liquidity, and interest rate risks.

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https://occ.gov/news-issuances/news-releases/2026/nr-occ-2026-9.html