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OCC Encourages Community Banks to Consider Developing Payment Stablecoin Capabilities

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OCC Encourages Community Banks to Consider Developing Payment Stablecoin Capabilities

Days after issuing the final rule to implement the GENIUS Act, the Office of the Comptroller of the Currency (OCC) encouraged community banks to develop payment stablecoin capabilities.

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“The OCC wants community banks to help shape the future of payments and is encouraging the development of payment stablecoin capabilities within the community banking sector,” the regulator said in a Monday (Oct. 26) post on X. “Interested community banks are encouraged to consider applying to become, or for a subsidiary to become, a permitted payment stablecoin issuer, as applicable.”

The GENIUS Act, which was enacted July 18, 2025, establishes a regulatory and licensing framework for payment stablecoins, PYMNTS reported Wednesday (Oct. 21).

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The OCC finalized rules governing stablecoin issuers under its jurisdiction on Wednesday. The rules established standards for reserves, redemption, custody and risk management.

The rule translates the GENIUS Act’s requirements into a supervisory framework for bank subsidiaries, federally approved nonbank issuers and certain other providers. It goes into effect on Jan. 18.

PYMNTS reported Thursday (Oct. 22) that the OCC’s final rule left an opening for cryptocurrency platforms to offer stablecoin rewards , setting up a contest over returns that could affect the cost and availability of bank loans. The agency will examine individual arrangements, as the final rule says existing rewards programs won’t automatically be considered compliant simply because they predate the law.


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