OCC Proposes Regulatory Framework for Payment Stablecoins
- The U.S. Office of the Comptroller of the Currency (OCC) has released a proposed rulemaking for the GENIUS Act, aiming to regulate stablecoins.
- Public comments are being sought over the next 60 days to shape this regulatory framework.
- The GENIUS Act is expected to take effect within 18 months after its enactment date in July, anticipated by January.
- A key provision includes a rebuttable presumption that contracts paying yield to stablecoin holders violate the GENIUS Act.
- The OCC’s proposal excludes provisions related to anti-money laundering and will address them separately with the Treasury.
This proposed rulemaking represents a significant move towards establishing a regulatory environment for stablecoins, allowing them to operate safely while fostering innovation in nonbank issuance.
With public comments open for two months, stakeholders have an opportunity to influence how stablecoins will be regulated under the new framework. The prohibition on yield payments could significantly impact how these assets are utilized. (Source)
