OCC Proposes Regulatory Framework for Stablecoins Under GENIUS Act The Office of the Comptroller of the Currency (OCC) has taken a decisive step toward formally recognizing stablecoins as a legal payment instrument in the United States. In a newly issued notice of proposed rulemaking , the OCC introduced a regulatory framework under the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, seeking public input on oversight standards for both domestic and foreign payment stablecoin issuers, marking a pivotal move toward clearer, nationwide stablecoin regulation. The proposed rules seek to bring long-awaited regulatory clarity to payment stablecoin issuers, placing their operations within a defined framework under the oversight of the OCC. The guidance outlines standards for permitted payment stablecoin issuance and sets clear expectations for custody activities conducted by OCC-regulated institutions. According to Eleanor Terrett of Crypto America, the proposal establishes firm ground rules for both issuance and custodial operations, signaling the OCC’s commitment to balancing responsible innovation with regulatory oversight. Meanwhile, Fabian Dori of Sygnum and Jason Lau of OKX argue that the proposed GENIUS Act could further accelerate innovation by steering stablecoin issuers toward real-world utility and sustainable use cases, rather than yield-driven models. OCC Advances GENIUS Act Framework, Tightening Stablecoin Oversight Comptroller Jonathan Gould said the proposed rules are designed to ensure stablecoins can “flourish in a safe and sound manner.” Therefore, the framework aims to strike a critical balance: fostering innovation in digital payments while protecting the financial system from emerging crypto risks. By clearly outlining permissible activities, the OCC intends to deliver regulatory clarity, reducing uncertainty for market participants and paving the way for broader, more confident adoption of stablecoins in everyday finance. Notably, the proposed rule excludes provisions tied to the Bank Secrecy Act (BSA), Anti-Money Laundering (AML) requirements, and Office of Foreign Assets Control (OFAC) sanctions. Those safeguards will be addressed in a separate rulemaking coordinated with the U.S. Department of the Treasury, ensuring stablecoin oversight aligns with broader federal efforts to combat illicit finance while preserving room for innovation. Meanwhile, Circle previously hailed the GENIUS Act as a landmark moment for U.S. stablecoin regulation, highlighting its clear guardrails, particularly limits on tech giants and banks issuing dollar-backed tokens, as a decisive step toward strengthening market integrity and consumer trust. Therefore, the OCC’s public consultation opens the door for industry leaders, academics, and the public to directly influence how the proposed stablecoin framework takes shape. As the GENIUS Act framework advances, it marks a turning point for digital assets. By formalizing rules around stablecoin issuance and custody, the OCC is laying the groundwork for regulated, mainstream adoption, bringing greater clarity, stability, and institutional confidence to the crypto market. On the other hand, venture capital giant Andreessen Horowitz previously urged the U.S. Treasury to embrace decentralized digital identity standards and modernized crypto regulations under the GENIUS Act, advocating for a privacy-first approach that aligns innovation with long-term regulatory clarity. Conclusion In summary, the OCC’s proposed framework under the GENIUS Act represents a pivotal step for stablecoins in the United States. By formally recognizing payment stablecoins as a permissible banking activity and establishing clear supervisory standards for issuers and custodians, the agency is accelerating their path toward full regulatory legitimacy. While detailed BSA/AML and OFAC compliance guidance will be issued in coordination with the Treasury Department, the proposal already sets a strong structural foundation for responsible expansion. If adopted, the framework could drive deeper institutional adoption, enhance consumer trust, and solidify the U.S. as a global leader in regulated digital payment innovation.
