OCC Urges Smaller U.S. Banks to Get Into Stablecoin Issuance

The Office of the Comptroller of the Currency (OCC) wants community banks to do more than just watch the stablecoin market from the sidelines. The regulator is pushing smaller U.S. banks to develop stablecoin-based payment services and, where allowed, consider issuing their own payment stablecoins.

1. The OCC said community banks should have a place in the new U.S. payment infrastructure alongside larger financial institutions. In practice, that means three paths: build proprietary technology and stablecoin-based payment services, obtain authorization to issue payment stablecoins under applicable legal requirements, or set up subsidiaries to issue digital assets where law permits it.
2. The timing matters. The statement came as the OCC promoted final regulations implementing the GENIUS Act, approved last week. The agency framed the framework as proportional regulation: issuer requirements vary by size, with the stated goal of lowering barriers for smaller market participants and letting them compete with larger issuers.
3. This is also part of the OCC Community Bank Comeback program, which is designed to tailor banking regulation and supervision to smaller institutions. The regulator said reduced burdens should create more room for bank growth, competition, and continued access to financial services for local communities.
4. There is no automatic license here. The OCC did not say banks can simply start issuing stablecoins; they still need to meet the applicable requirements and obtain the necessary approvals before moving into the activity.
5. The broader market already has working examples of bank access to stablecoin payments. More than 1,000 U.S. banks and credit unions gained access through a Coinbase and Moov partnership, while an integration between Stablecore and Jack Henry FIN extended similar capabilities to more than 1,500 financial institutions. The OCC has also granted preliminary approval for crypto-focused banks by Revolut and OpenReserve.