Key facts
- The OCC is encouraging community banks to consider becoming payment stablecoin issuers.
- Finalized rules for the GENIUS Act, a stablecoin law, will be implemented in January.
- Some banking advocacy groups opposed proposed OCC rules on stablecoin yield.
The Office of the Comptroller of the Currency (OCC) has called on community banks to consider entering the payment stablecoin market. This move aligns with the regulator's finalized rules for the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which is slated for implementation in January. The OCC stated that interested community banks or their subsidiaries are encouraged to apply for permission to become payment stablecoin issuers. This initiative comes amid pushback from some banking groups regarding the OCC's proposed rules on stablecoin yield, with concerns that they may deviate from the congressional intent of the GENIUS Act. The entry of community banks into the stablecoin market could potentially challenge the market share held by existing crypto companies and financial institutions.