stablecoins,” a type of stablecoin to be used as a means of payment or settlement rather than investment. Payment stablecoin issuers will generally be limited to: (i) certain U.S. qualified persons subject to federal or, for certain issuers, state supervision; or (ii) certain foreign qualified persons registered with the OCC and subject to a comparable regulatory and supervisory regime (as determined by the Treasury Secretary). The GENIUS Act will take effect on the earlier of: (i) January 18, 2027; or (ii) 120 days following the issuance of final regulations implementing the Act. The Proposed Rules would establish a comprehensive federal licensing and prudential regulatory framework for Stablecoin Issuers (defined below) subject to OCC jurisdiction as well as a registration regime for foreign payment stablecoin issuers. The Proposed Rules address standards and requirements for payment stablecoin issuers relating to, among other areas, permitted activities, reserve asset composition, redemption timing, risk management (including private key management), custody, capital levels, and periodic reporting. For example, the Proposed Rules would establish stringent reserve asset composition and diversification requirements that would take the form of either a principles-based framework with an optional safe harbor or a mandatory quantitative framework. These requirements could limit the amount of reserve assets invested in a single U.S. government money market fund. The OCC is also seeking to extend the GENIUS Act’s prohibition on the direct payment of interest or yield by a payment stablecoin issuer to the “holders” of its payment stablecoins. The Proposed Rules would extend this prohibition to certain indirect payments by affiliates and “related third parties” of payment stablecoin issuers, including white-label partners. The GENIUS Act was silent on indirect payments and certain platforms and intermediaries currently pay “rewards” to consumers that hold payment stablecoins. As Congress considers comprehensive market structure legislation, payment of interest or yield on a payment stablecoin remains an active and contentious issue, with some market participants expressing concerns that paying yield on payment stablecoins could impact bank deposits and potentially reduce bank lending. 3 The OCC has asked over 200 specific questions in the Proposing Release, including in areas that are likely to have significant competitive, product design and operational implications. The deadline for comments is May 1, 2026.
Scope and Licensing
The Proposed Rules would apply to three main categories of “permitted payment stablecoin issuers” under the GENIUS Act:
subsidiaries of insured national banks 4 or federal savings associations,
3 The Stablecoin Yield Debate, Congressional Research Service (March 6, 2026). 4 The OCC recently issued a final rule amending its national bank chartering regulation to clarify that national trust banks (which generally do not accept deposits or carry FDIC insurance) may engage in non-fiduciary activities in addition to fiduciary activities. See OCC, National Bank Chartering , Final Rule, 91 Fed. Reg. 9977 (Mar. 2, 2026). The OCC has also recently conditionally approved several applications from firms seeking national trust bank charters to act as custodians for digital assets, which some claimed was beyond the permitted scope of OCC authority and national trust bank powers. This final rule seeks to provide clarity for entities that may wish to obtain national trust bank charters to engage in stablecoin-related activities contemplated by the GENIUS Act.
March 2026 / Page 3
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