OCC outlines stablecoin waiver process under GENIUS Act

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OCC stablecoin waiver process

Highlights

OCC bulletin clarifies application and waiver process for national banks, subsidiaries, and stablecoin issuers under the GENIUS Act, with applications opening post-OMB approval.
GENIUS Act requires approval as a permitted payment stablecoin issuer by January 18, 2027, but waivers available for issuers with pending, substantially complete applications by that date.
OCC expects to generally grant waiver requests for existing issuers to minimize market disruption, but noncompliance after January 18, 2027, could result in criminal penalties.

Application process and waiver timeline

As reported by the Office of the Comptroller of the Currency, the agency is issuing a bulletin that clarifies how regulated entities can file applications and request waivers under the Guiding and Establishing National Innovation for U.S. Stablecoins Act, or GENIUS Act.

The bulletin applies to national banks and their subsidiaries, federal savings associations and their subsidiaries, federal branches and their subsidiaries, foreign payment stablecoin issuers, nonbank entities seeking approval as federal qualified payment stablecoin issuers, and state qualified payment stablecoin issuers that fall under OCC regulatory or enforcement authority.

The OCC says it will begin accepting applications after the Office of Management and Budget gives final approval to the information collection tied to the application forms. The agency says it will announce the start of application and waiver submissions in a press release.

Under the act, a person generally must be approved as a permitted payment stablecoin issuer to issue a payment stablecoin in the United States beginning January 18, 2027. The OCC says any stablecoin issuer with a pending substantially complete application on or before that date may request a waiver from requirements of the act or final rule.

Market continuity and regulatory impact

The OCC says the GENIUS Act does not include a separate compliance implementation process for existing payment stablecoin issuers already operating in the United States. Instead, section 5(f) allows a primary federal payment stablecoin regulator to waive requirements for certain applicants with pending applications on January 18, 2027, including subsidiaries of insured depository institutions and applicants to become federal qualified payment stablecoin issuers.

The agency says it expects to grant waiver requests from the prior approval requirement for existing issuers unless there are compelling reasons to deny them. It says that approach would help minimize disruption for issuers, token holders, and the broader market between the law taking effect and a final decision on an application.

Applications and related waiver requests should be submitted through the channels described on the OCC's GENIUS Act landing page, using the prescribed form and all relevant supporting materials. Noncompliance with the GENIUS Act beginning January 18, 2027, carries criminal penalties, raising the stakes for issuers seeking to maintain operations in the U.S. market.

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