OCC invites community banks to issue their own stablecoins, but is not yet taking applications as federal approval rules start January 18

The Office of the Comptroller of the Currency told community banks on Monday that it wants them in the stablecoin business. CoinDesk reported that the regulator encouraged them to apply to become permitted payment stablecoin issuers under the GENIUS Act, either directly or through a subsidiary, and tied the invitation to its "Community Bank Comeback" effort to streamline rules for smaller lenders.

An OCC fact sheet says its final rule scales requirements to an issuer's size and risk, and that bank deposits can serve as reserve assets. There is a catch on timing: the agency is not yet accepting applications, and CoinDesk reported that the process opens only after federal paperwork approval is complete. A bulletin dated October 21 says issuers must comply from January 18, 2027, and that existing issuers with substantially complete applications by then may request temporary waivers.

The invitation lands in a fight. Banking groups have pressed lawmakers to limit stablecoin yields, fearing deposits will leave. The Independent Community Bankers of America has sued the OCC over national trust-bank charters for crypto firms, and Senator Elizabeth Warren has asked the agency to explain charters for nine crypto-focused institutions. An OCC spokesperson said those firms have different business models than community banks.

What to watch: when applications open, and whether small banks apply before January 18.