OCC Urges Community Banks to Step Into the Payment Stablecoin Market

The US Office of the Comptroller of the Currency wants smaller lenders in the stablecoin business. In a Monday post on X, the agency said it supports building payment stablecoin capabilities inside the community banking sector and invited interested banks, or their subsidiaries, to apply as permitted issuers. The appeal arrived days after the regulator completed its rules for the GENIUS Act, the stablecoin law that takes effect in January.

Why GENIUS Act Stablecoin Rules Are Under Fire

Not everyone is happy with how the OCC is applying the law. Several banking advocacy groups have pushed back on its proposed treatment of stablecoin yield, and some argue the approach contradicts what Congress intended when it passed GENIUS.

Community Banks vs Crypto Companies

If enough local banks join, they could take market share from crypto firms and larger financial institutions. Still, relations are tense. Earlier this month, the Independent Community Bankers of America sued the OCC over charter approvals granted to crypto companies, claiming those firms enjoy an edge because they do not face the same regulatory requirements as traditional bankers.