OCC urges community banks to enter stablecoin market under GENIUS Act

The U.S. Office of the Comptroller of the Currency (OCC) has called on community banks to apply for permission to issue dollar-pegged stablecoins under the GENIUS Act, aiming to involve smaller lenders in shaping the future of payments. Stablecoin issuers must comply with the OCC's finalized regulations by January 18, 2027, though existing applicants with substantially complete submissions may request temporary waivers. The initiative comes as banking groups warn that yield-bearing stablecoins could draw deposits away from traditional banks.