US stablecoin regulation just took a big step forward. The OCC has released its first rule framework

OCC Drops First Federal Stablecoin Rules—No Interest Payments, 2-Day Redemption, $5M Capital Floor

The U.S. stablecoin rulebook is starting to fill out. The OCC just released its first federal draft rules for payment stablecoin issuers, laying out what comes next after the GENIUS Act lands.

Who's covered? National banks, federal savings associations, certain foreign bank branches in the U.S., and any issuer that meets the GENIUS Act's bar. The goal: one unified framework with clear lanes as the industry scales.

Under the draft, a "payment stablecoin" is any digital asset redeemable at a fixed value. If you want to issue one, you'll need a license. Permitted activities? Issuance, redemption, reserve management, custody—that's it. No drifting into other financial biz.

No interest, no yields. That's the line. Stablecoin issuers can't pay holders anything. If a third party tries to route around that via a partnership, regulators will treat it as a violation. The OCC's logic: stablecoins shouldn't compete with bank deposits or act like stealth savings accounts.

Reserves must be real and ring-fenced. Dollar-for-dollar backing, strictly separate from company assets. Allowed reserve assets: cash, demand deposits, short-term Treasuries, overnight repos backed by those, and certain tokenized Treasury products.

Liquidity rules: Redemptions within two business days. Clear policies. Fee changes? Seven days' notice to the market.

Capital: New entrants need at least $5 million in capital, plus an operational reserve covering the previous year's costs. If capital dips below the line for two straight quarters, no new issuance—and an orderly wind-down kicks in.

Industry watchers see this as the U.S. finally building a real stablecoin framework—from issuance to reserves to custody to liquidity. The pieces are coming together.