A U.S. financial regulator urged smaller banks to develop stablecoin-based payment services and consider issuing their own stablecoins.
The Office of the Comptroller of the Currency (OCC), which supervises national banks and federal savings associations, called for greater participation by community banks in the payment stablecoin industry. The regulator encouraged banks to consider becoming permitted stablecoin issuers, including through the establishment of subsidiaries.
The OCC’s statement came as the agency promoted final regulations implementing the GENIUS Act, approved last week. The agency emphasized that smaller banks should have the opportunity to help shape the new U.S. payment infrastructure alongside larger financial institutions.
The regulator outlined several ways community banks could participate in the stablecoin sector:
Developing proprietary technology solutions and stablecoin-based payment services;
Obtaining authorization to issue payment stablecoins in compliance with applicable legal requirements;
Establishing subsidiaries to issue digital assets where permitted by law.
The OCC also emphasized proportional regulation. The agency said the GENIUS Act’s regulatory framework establishes different requirements based on issuer size. This approach is intended to reduce regulatory barriers for smaller market participants and allow them to compete with larger issuers.
The initiative is also part of the OCC Community Bank Comeback program, which aims to tailor banking regulations and supervisory procedures to the scale of smaller financial institutions. According to the regulator, reducing regulatory burdens should create additional opportunities for bank growth, promote competition, and preserve local communities’ access to financial services.
The OCC didn’t announce that banks would automatically receive authorization to issue stablecoins. Financial institutions must meet applicable requirements and obtain the necessary approvals before engaging in such activities.
Previously, more than 1,000 U.S. banks and credit unions gained access to stablecoin payments through a partnership between Coinbase and Moov. An integration between Stablecore and Jack Henry FIN provided similar capabilities to more than 1,500 financial institutions. The OCC also granted preliminary approval for the establishment of crypto-focused banks by Revolut and OpenReserve.
