OCC urges community banks to apply as stablecoin issuers

Key points

• OCC invited community banks to apply as GENIUS Act stablecoin issuers, directly or via subsidiaries
• Approval is generally required to issue stablecoins in the U.S. from Jan. 18, 2027
• OCC is not yet accepting applications; it awaits OMB approval of the paperwork
• Existing issuers may seek waivers of up to 12 months if applications are substantially complete

The Office of the Comptroller of the Currency (OCC) on Monday urged community banks to enter the payment stablecoin market, inviting them to apply to become permitted issuers under the GENIUS Act, CoinDesk reported. Banks may apply directly or through subsidiaries.

The agency made the call in a post on X, saying it was encouraging the development of payment stablecoin capabilities within the community banking sector, according to Cointelegraph. CoinDesk said the push is part of the OCC’s “Community Bank Comeback” initiatives, which aim to tailor regulation and supervision so smaller lenders can compete.

Key dates and the application process

In OCC Bulletin 2026-51, issued Oct. 21, the agency said that starting Jan. 18, 2027, issuers generally must be approved as permitted payment stablecoin issuers before issuing stablecoins in the United States. Issuing without approval carries criminal penalties, the bulletin said.

The OCC has not yet begun accepting applications. It said it will start after the Office of Management and Budget approves the related information collection, and it will announce the opening in a press release.

Once applications open, the bulletin says the OCC will decide within 30 days whether a filing is substantially complete. It aims to act on complete applications within 120 days. Submissions must address areas including business plans, management, reserves, risk management, capital and liquidity, and anti-money-laundering compliance.

Waivers for existing issuers

The bulletin also describes a waiver process. Existing U.S. issuers with a substantially complete pending application may ask in writing for a waiver from the prior-approval requirement, for up to 12 months from Jan. 18, 2027. The OCC said it generally expects to grant such requests unless its review finds more compelling reasons to deny them.

Waivers are not expected for prospective issuers not yet operating in the U.S. Insured depository institutions themselves cannot receive waivers, though their subsidiaries may.

Context: bank groups and legal challenges

The announcement comes amid tension between the banking industry and the agency. CoinDesk reported that banking groups have pressed lawmakers to restrict stablecoin yields, worried that interest-paying tokens could draw deposits away from banks. Cointelegraph said some groups criticized the OCC’s proposed rules on yield, arguing they went against congressional intent behind the GENIUS Act.

Earlier this month, the Independent Community Bankers of America sued over the OCC’s approval of national trust-bank charters for crypto firms, according to both outlets. Cointelegraph said the suit alleges crypto companies have an advantage because they are not subject to the same requirements as community banks. CoinDesk added that Sen. Elizabeth Warren has questioned the OCC’s chartering of nine crypto-focused institutions, and that the OCC has defended those charters as distinct from community banking.

Cointelegraph noted that if enough community banks entered the market, they could challenge the market share of crypto companies and other financial institutions.