OCC urges community banks to start issuing stablecoins before deadline

The U.S. Office of the Comptroller of the Currency has called on community banks to enter the stablecoin payments market, encouraging them to issue their own dollar-pegged tokens.

Acting Comptroller of the Currency Michael Hsu said the agency wants smaller banks to shape the U.S. digital payments sector by developing stablecoin services. The push comes under provisions of the recently enacted GENIUS Act.

Established stablecoin issuers must comply with the OCC’s finalized regulations by January 18, 2027. The regulator noted that issuers with substantially complete applications can seek temporary waivers to continue operating while the OCC completes its reviews.

The call to action reflects the regulator’s desire to integrate smaller, traditional lenders into the growing digital asset payments ecosystem. It also follows warnings from banking groups that yield-bearing stablecoins could drain deposits from traditional bank accounts.