The U.S. Office of the Comptroller of the Currency (OCC) urged small and local banks to prepare to apply for permission to issue their own dollar-pegged tokens and have a say in stablecoin payments.
According to CoinDesk, the regulator does not want the stablecoin market to be left solely to large banks and crypto companies. The OCC said banks serving local customers can also help shape the future of payments, and encouraged them to apply to become permitted issuers, either directly or through their subsidiaries, under the GENIUS Act.
Call to enter the market as deposit concerns persist
The call comes as banking groups in the U.S. are pressuring lawmakers to place limits on stablecoin yields. Banks are concerned that interest-bearing tokens could draw customers’ money away from traditional deposit accounts.
The OCC wants small banks to compete in this new payments space as well. The agency described these opportunities as part of its efforts to support local banks’ growth, help them compete, and enable them to continue serving their customers.
Final approval for application process still pending
Applications to issue stablecoins are not yet being accepted. The process will open once the necessary federal paperwork approval is complete.
According to a separate OCC bulletin dated October 21, compliance with the regulations finalized under the GENIUS Act and federal approval requirements will take effect on January 18, 2027. Existing issuers may request temporary exemptions to continue operating while their applications are under review, provided they submit substantially complete applications by that date. The agency said it generally expects to grant these requests where appropriate.
The bank charters the OCC has granted to crypto companies are also a subject of debate. The Independent Community Bankers of America (ICBA) sued the agency, alleging that it exceeded its legal authority by granting crypto firms national trust bank status. The OCC argues that these companies’ business models and the services they intend to offer differ from those of typical local banks.
Not investment advice.