The OCC is urging community banks to apply to issue their own dollar-pegged stablecoins, either directly or through subsidiaries, under the GENIUS Act. Issuers must comply with the OCC’s finalized rules starting Jan. 18, 2027, while existing issuers with substantially complete applications by that date may request temporary waivers to keep operating while regulators review their applications. Sensing the opportunity, smaller banks may gain a new way to compete in digital payments and reduce regulatory burdens. Banking groups fear that interest-bearing stablecoins could pull deposits away from traditional banks. The OCC is also facing criticism for granting national trust-bank status to nine crypto-focused institutions, a practice challenged by the ICBA and Senator Elizabeth Warren.
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