Banks Seek Stricter Risk Controls for Nonbank Stablecoin Issuers

The Office of the Comptroller of the Currency (OCC) has received comments on its proposed application forms for payment stablecoin issuers, and banks are pushing for stricter risk controls.

Banks want nonbank applicants to demonstrate governance, cybersecurity practices, and recovery planning procedures, arguing that these applicants may not be subject to the same robust federal prudential framework as insured depository institutions (IDIs).

The Bank Policy Institute, American Bankers Association, Consumer Bankers Association, and Independent Community Bankers of America have jointly requested that the OCC include additional risk controls in its review process.