OCC invites community banks to issue their own stablecoins under the GENIUS Act

Summary

The U.S. Office of the Comptroller of the Currency on Monday, Oct. 26, urged community banks to enter the stablecoin payments market, including by applying to become permitted stablecoin issuers under the GENIUS Act, CoinDesk and Cointelegraph reported.

The OCC said interested community banks, or their subsidiaries, are encouraged to consider applying, and framed the push as part of its 'Community Bank Comeback' effort to tailor regulation so smaller lenders can compete, according to CoinDesk.

The call comes days after the OCC finalized its GENIUS Act rules, which issuers must follow from Jan. 18, 2027; the regulator has not yet started accepting applications, CoinDesk said.

Both outlets noted the tension with community bankers: banking groups have pushed to restrict stablecoin yields, and the Independent Community Bankers of America has sued the OCC over its trust-charter approvals for crypto firms.

Key facts

• The OCC posted the encouragement on X on Monday, saying it was 'encouraging the development of payment stablecoin capabilities within the community banking sector.' (Cointelegraph)
• Existing issuers that file substantially complete applications by Jan. 18, 2027 may request temporary waivers to keep operating during review, and the OCC said it generally expects to grant them where appropriate. (CoinDesk)
• The OCC said applications will open after the required federal paperwork approval is completed. (CoinDesk)
• Banking groups have pressed lawmakers to limit stablecoin yields over fears interest-paying tokens could pull deposits from banks. (CoinDesk)
• Earlier this month the Independent Community Bankers of America sued the OCC, alleging crypto firms gained an advantage by not facing the same requirements as community banks. (Cointelegraph)