The U.S. Office of the Comptroller of the Currency (OCC) unveiled a draft framework under the GENIUS Act 2025, formally bringing payment stablecoins under federal banking oversight.
The proposal opens a 60-day public comment period and outlines how issuers can legally operate in the United States under the new stablecoin bill.
Only Licensed Issuers Allowed
In a document shared, only “permitted payment stablecoin issuers” would be allowed to issue dollar-backed tokens to U.S. users. Federally chartered nonbanks would fall under direct OCC supervision, while bank subsidiaries would remain under their primary regulators.
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The framework reinforces one of the GENIUS Act’s key points: compliant payment stablecoins are not treated as securities. Instead, they are placed under bank-style supervision, with rules on reserves, governance, and operational risk. This approach effectively excludes unlicensed offshore issuers from the U.S. market.
What’s Next: Rules and Timelines
While the draft focuses on issuer authorization and oversight, the OCC plans additional guidance on anti-money laundering (AML), sanctions compliance, and operational safeguards.
The GENIUS Act is expected to take effect either 18 months after enactment or 120 days after the final implementing rules, whichever comes first.
Why This Matters
By bringing stablecoins into the federal banking system, regulators are positioning dollar-backed tokens as official payment tools rather than speculative assets. The move could support wider institutional use while increasing compliance requirements.
With the public comment period open, the crypto industry has a limited window to influence the first comprehensive U.S. stablecoin framework.
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People Also Ask:
The GENIUS Act 2025 is U.S. legislation that establishes a federal framework for regulating payment stablecoins and their issuers.
Under the GENIUS Act framework, compliant payment stablecoins are not treated as securities, but are regulated as payment instruments under a bank-style supervisory model.
Issuers must follow rules on reserves, operational risk management, governance, anti-money laundering (AML), and sanctions compliance. Some rules are phased in through additional guidance.
