A key step in US stablecoin regulation: OCC releases the first regulatory framework for payment stablecoin issuance

March 10 News: The U.S. stablecoin regulatory framework is gradually taking shape. The Office of the Comptroller of the Currency (OCC) recently released the first federal draft rules targeting U.S. payment stablecoin issuers, providing a regulatory framework for stablecoin issuance and operation after the enactment of the upcoming GENIUS Act.

The proposal applies to institutions regulated by the OCC that manage payment stablecoin activities, including national banks, federal savings associations, certain foreign bank branches in the U.S., and federal or state-level stablecoin issuers that meet the requirements of the GENIUS Act. The OCC stated that these rules aim to establish a unified regulatory foundation for the U.S. stablecoin market and offer clear compliance pathways as the industry expands.

According to the draft, payment stablecoins are defined as digital assets that can be redeemed at a fixed value. Any institution wishing to issue stablecoins in the U.S. must obtain the appropriate regulatory license. The OCC also clarified that core activities permitted for issuers include stablecoin issuance, redemption services, reserve management, and custodial services. Other financial activities are outside the scope of the license.

Notably, the rules explicitly prohibit stablecoin issuers from paying interest or yields to holders. If a third party offers similar returns through a partnership agreement with the issuer, regulators will presume it to be a violation. The OCC stated that this restriction aims to prevent stablecoins from being used as disguised interest-bearing products and to avoid competition with traditional bank deposits.

Regarding reserve management, regulators require issuers to hold assets equivalent to the circulating stablecoins and to keep reserves strictly segregated from other company assets. Acceptable reserve assets include U.S. dollar cash, demand deposits, short-term U.S. Treasuries, overnight repurchase agreements backed by these assets, and certain tokenized Treasury products.

Additionally, the regulatory framework sets specific requirements for liquidity and redemption mechanisms. Issuers must ensure that stablecoins can be redeemed within two business days and must publicly disclose transparent redemption policies. If fee structures change, issuers are required to notify the market seven days in advance.

On capital requirements, new market entrants must maintain at least $5 million in capital and prepare an operational reserve fund to cover the previous year’s operating costs. If capital or collateral levels fall below the threshold for two consecutive quarters, issuers must cease issuing new stablecoins and initiate an orderly liquidation process.

Industry experts believe that this draft rules mark a more concrete stage in the development of the U.S. stablecoin regulatory system. As the GENIUS Act advances, the U.S. is attempting to build a comprehensive regulatory structure covering issuance, reserves, custody, and liquidity.