US regulator urges community banks to issue payment stablecoins

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The US Office of the Comptroller of the Currency (OCC) has encouraged community banks to enter the payment stablecoin market under its rules implementing the GENIUS Act.

In a Monday post on X, the regulator urged interested banks to apply to become permitted stablecoin issuers or establish subsidiaries to do so. The law is due to take effect in January.

The call comes amid a dispute between banking groups and the OCC over stablecoin rewards, with industry representatives arguing that the regulator’s final rules weaken the restrictions intended by Congress.