The Office of the Comptroller of the Currency (OCC) has urged community banks to explore the payment stablecoin market, aligning with the finalized rules for the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. The OCC announced this encouragement in a Monday post on X, highlighting that the GENIUS Act will take effect in January after the regulator finalized its rules last week.
The OCC invited interested community banks to apply to become payment stablecoin issuers or to have a subsidiary do so. This call comes amid pushback from banking advocacy groups against the OCC’s proposed rules on stablecoin yield, with some arguing that these rules contradict the original intent of the GENIUS Act.
If community banks enter the stablecoin market in significant numbers, they could challenge the dominance of crypto companies and financial institutions. This development follows ongoing legal action by community banks against the OCC, which approved charter applications for crypto companies. Earlier this month, the Independent Community Bankers of America filed a lawsuit alleging that crypto firms have an unfair advantage due to less stringent regulatory requirements.