The era of the ‘Wild West’ in digital currency is officially over. On Wednesday, the Office of the Comptroller of the Currency (OCC) released OCC Bulletin 2026-3, a massive 376-page regulatory proposal that effectively activates the GENIUS Act implementation. This landmark move establishes the first comprehensive federal framework for ‘permitted payment stablecoin issuers’ in the United States, introducing a stringent $5 million capital floor and closing significant loopholes regarding yield-bearing products.
The $5 Million Capital Floor and Federal Licensing
For years, stablecoin issuers operated in a regulatory gray zone, often relying on state-level money transmitter licenses that were ill-equipped for digital assets at scale. The new OCC rules change the game entirely. Under the proposed framework, any entity seeking a federal stablecoin issuer license must now meet a stablecoin capital floor of at least $5 million at inception.
This is not merely a box-checking exercise. The OCC explicitly stated that this $5 million figure is a “statutory floor, not a safe harbor.” Regulators retain the discretion to demand significantly higher capital buffers based on an issuer’s transaction volume, complexity, and operational risk profile. This “prudential approach” signals that the OCC intends to treat stablecoin issuance as a closely supervised financial activity—akin to traditional banking—rather than a light-touch technology service.
Closing the ‘Yield Loophole’
One of the most contentious aspects of US stablecoin regulation 2026 has been the treatment of interest-bearing accounts. The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act), signed into law by President Trump in July 2025, explicitly prohibits issuers from paying interest or yield to holders. However, the industry had widely anticipated “workarounds” involving third-party affiliates.
OCC Bulletin 2026-3 aggressively preempts these strategies. The rule introduces a “subjective rebuttable presumption” that the yield ban is violated if an issuer’s affiliate or related third party offers rewards funded indirectly by the issuer. This effectively targets the ‘marketing yield’ strategies popular among crypto exchanges, forcing a clear separation between stablecoin utility and investment products.
Redemption Guarantees and Anti-Run Mechanisms
To prevent the kind of liquidity crises that plagued the market in the early 2020s, the new digital asset banking rules mandate strict redemption mechanics. Issuers are legally required to honor redemption requests at par (1:1 for US dollars) within two business days. This requirement ensures that “payment stablecoins” function truly as cash equivalents rather than speculative instruments.
Crucially, the proposal includes a safety valve for systemic stress. If an issuer receives redemption requests exceeding 10% of their total outstanding value within a 24-hour period, an automatic extension mechanism kicks in. This “circuit breaker” is designed to prevent fire sales of reserve assets—which must now consist solely of cash, short-term US Treasuries, or Treasury-backed reverse repos.
Ending ‘Debanking’ by Fiat
In a nod to the ‘Crypto Capital’ executive order signed alongside the legislation, the proposal also codifies the elimination of ‘reputation risk’ as a valid basis for bank supervision. This provision effectively bars regulators from pressuring banks to sever ties with crypto firms solely due to political disfavor, addressing the long-standing industry complaint of “debanking.”
Cryptocurrency Regulation Trends: What’s Next?
The release of this bulletin triggers a 60-day public comment period, after which the rules will be finalized. For the broader market, the message is clear: the path to legitimacy involves heavy compliance costs. While the GENIUS Act provides a pathway for banks and fintechs to issue digital dollars, the barrier to entry has been raised significantly. We are likely to see a consolidation of smaller players who cannot meet the new capital and operational backstops, paving the way for institutional giants to dominate the next phase of the digital economy.
