Proposed rules from the US OCC for stablecoin regulation: Stablecoin redemptions will not exceed 2 business days, and if daily redemptions exceed 10% of the circulating supply, the redemption period c
PANews reported on February 27 that the U.S. Office of the Comptroller of the Currency (OCC) recently released a 376-page proposed rule to implement the GENIUS Act's regulatory framework for the issuance and custody of payment stablecoins . The rule clarifies the definition of "payment stablecoin," the scope of applicable entities (including federal/state accredited issuers and foreign issuers), the 1:1 high-liquidity reserve asset requirement, daily liquidity and concentration constraints, and prohibits the payment (or disguised payment) of interest or returns to holders, including significant restrictions on rewards, which could impact Coinbase . The proposed rule requires payment stablecoins to complete redemptions within two business days under normal circumstances, automatically extending to seven calendar days if daily redemptions exceed 10% of the circulating supply. In contrast, USDC currently uses a near-T+0 redemption model (rapid redemption within business days) and does not have a similar "automatic extension" mechanism. The proposed rule also includes information disclosure and auditing requirements, as well as the OCC's federal regulatory takeover and exemption mechanisms for state-accredited stablecoin issuers reaching the $10 billion issuance threshold.
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