In an October 27 speech before a state bankers association, Comptroller of the Currency Jonathan V. Gould discussed the OCC’s final rule implementing the GENIUS Act, issued October 21 (previously covered by InfoBytes here), describing it as a “clear, practical framework for payment stablecoin innovation” with standards for reserve backing, redemption, and risk management. Gould compared the GENIUS Act to the National Currency Act of 1863, saying that just as the OCC was created to ensure a national currency “backed by quality assets,” the agency is now building a framework to ensure payment stablecoins are similarly backed by high-quality reserves. He said community banks “have a role in the future of payments,” and noted that the final rule gives interested community banks a way to explore issuing payment stablecoins through a subsidiary, with requirements that, in his words, are meant to fit “the size and risk of the issuer” rather than impose a “one-size-fits-all compliance burden.”

Gould identified several features of the rule that he characterized as supporting community bank participation: (i) the same standards apply to bank and nonbank issuers, which he said keeps community banks from having to compete “on an uneven field”; (ii) smaller issuers may qualify for longer examination cycles, similar to the extended cycles some small banks already have; and (iii) bank deposits may serve as reserve assets backing stablecoins. He noted that the rule takes effect January 18, 2027, and said the OCC will “soon” begin accepting and processing applications and waiver requests from prospective permitted payment stablecoin issuers, and that, given what he called the industry’s “infancy,” the agency will monitor its development and adjust the supervisory and regulatory framework as necessary. Gould also tied the rule to the administration’s “Community Bank Comeback” initiative and cited related OCC steps, including refocusing supervision on material financial risk, lowering assessment rates, and finalizing with the FDIC a rule prohibiting the use of reputation risk in supervision.