GENIUS Act Proposal Enters Feedback Stage at OCC

OCC opens feedback on GENIUS Act stablecoin proposal, seeking comments to refine safety rules, reserves standards, and banking oversight nationwide.

The Office of the Comptroller of the Currency has opened a feedback stage. The proposal is seeking comments on the implementation of the Guiding and Establishing National Innovation for U.S. Stablecoins Act.

OCC Invites Industry and Public Comments on Stablecoin Rules

The goal of the framework is to help support innovation while safeguarding financial stability, officials said. Moreover, the agency stressed consumer safeguards, transparency standards and clarity of reserves. Therefore, the banking and crypto sectors’ stakeholders are encouraged to respond.

OCC conditionally approves 5 national trust bank applications in December 2025. These approvals were an indication of further interaction with digital asset companies seeking federal oversight. However, regulators emphasized safety, discipline of compliance, and well-defined operational boundaries as well.

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Now, the new proposal is specific on stablecoin issuance and allowable activities. Additionally, it clarifies responsibilities for the stablecoin issuers, i.e. national trust banks. For this reason, the OCC is seeking input before making a decision about a final regulatory rule.

Meanwhile, the Federal Deposit Insurance Corporation extended the related stablecoin comment period. The deadline is now extended to May 18, 2026, so that it can be more widely participated in. Similarly, the regulators coordinate timelines to ensure the standard of supervision, reporting, and risk management.

Importantly, the proposal highlights reserve composition, capital adequacy, and liquidity buffers. Furthermore, it emphasizes redemption rights, clarity of disclosure, and operational resilience requirements. Therefore, strong safeguards to protect their customers during stress events must be demonstrated by issuers.

The OCC added that anti-money laundering provisions will be in a separate coordinated rulemaking. Instead, those elements must cooperate with the Department of the Treasury. Meanwhile, interagency coordination is at the core of stablecoin supervision efforts at the national level, which are often consistent.

Proposal Emphasizes Reserves, Liquidity, and Consumer Protection Measures

Industry participants said clearer rules could help reduce uncertainty and spur responsible innovation. However, some institutions said compliance costs could add a lot of operational complexity. Therefore, feedback may influence adjustments prior to the issuance of final regulations by the agency.

Stablecoins nevertheless have significance in terms of payments, trading, and cross-border settlement activities worldwide. As such, policymakers are trying to balance the benefits of innovation with the safeguards of the system against risk. The OCC said the participation will help refine oversight for evolving digital finance.

In addition, the proposal has defined reporting obligations, audit expectations, and governance responsibilities clearly. Furthermore, institutions are expected to keep proper records to support reserve backings and redemption operations.

Meanwhile, banks evaluate technology needs, cybersecurity measures, and liquidity management adjustments carefully. However, there are many firms that support the rules to be consistent and to lessen fragmentation across state rules. Consequently, national standards could facilitate the planning of compliance and cross-border payment integrations.

Importantly, regulators seek to increase consumer confidence in the dollar-backed digital payment instruments. Moreover, transparency rules could help enhance disclosures regarding reserves, risks, and redemption timelines.

The OCC emphasized that submitted comments will be used to inform revisions directly before issuing final regulations. Additionally, agencies will coordinate approaches to oversight so that there is consistency in oversight of banking and payments. Consequently, final rules may form innovation, competition, and stability with America’s evolving digital asset ecosystem.

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