ABA seeks revisions to proposed rule for licensing payment stablecoin issuers
What's happening
The Office of the Comptroller of the Currency has finalized a rule to implement the GENIUS Act, creating a supervisory framework for stablecoin issuers that covers reserves, redemption, custody and risk management and sets a January compliance timeline. The rule applies to bank subsidiaries, federally approved nonbank issuers and other entities under OCC jurisdiction, and includes a prohibition on direct payment-of-interest from stablecoin issuers while leaving third-party yield arrangements to case-by-case evaluation. The American Bankers Association says Treasury's proposal should not let nonbank entities bring unregulated stablecoins into the U.S. market through intermediaries, and it warned the rule should not constrain legitimate bank activities, asking for revisions to the proposed licensing approach.
Why it's trending
Momentum from final OCC rules, an approaching January compliance date, and ABA pushback are forcing fast follow-up on who can issue payment stablecoins and how.
SignalNewly emerging, confirmed across 1 independent source type.
Story volume
Stories per dayAngles you could write
If the OCC thinks it solved stablecoin risk with a narrow interest ban, it underestimated how intermediaries create loopholes, the ABA is already pushing back on allowing nonbanks to slip unregulated coins into the U.S. through intermediaries.
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Original sources5
- OCC issues final rule on stablecoin framework
The regulation bans direct yield payments to customers from stablecoin issuers, but the OCC said it would “evaluate” third-party yield arrangements on a case-by-case basis.
Banking DiveOct 21 - OCC sets out final rule to implement Genius Act
The Office of the Comptroller of the Currency (OCC) today announced a final rule to implement the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act.
FinextraOct 21 - OCC Finalizes Stablecoin Framework as January Compliance Date Approaches
The Office of the Comptroller of the Currency (OCC) has finalized rules governing stablecoin issuers under its jurisdiction, establishing standards for reserves, redemption, custody and risk management ahead of a January deadline. The rule, issued Wednesday (Oct. 21), translates the GENIUS Act’s requirements into a supervisory framework for bank subsidiaries, federally approved nonbank issuers and
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