OCC urges community banks to enter stablecoin payments market

The OCC encouraged community banks to apply directly or through subsidiaries to issue dollar-pegged tokens as permitted stablecoin issuers under the GENIUS Act, framing the move as part of its Community Bank Comeback initiatives to right-size regulation and tailor supervision. The push comes as U.S. banking groups have pressed lawmakers to restrict stablecoin yields, fearing interest-paying tokens could drain traditional deposits. The regulator wants smaller lenders involved rather than leaving the market to large banks and crypto firms. A separate Oct. 21 bulletin said issuers must comply with finalized GENIUS Act regulations from Jan. 18, 2027, when federal approval requirements take effect.

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