Stablecoin policy moved to the center of Washington’s banking debate as the Office of the Comptroller of the Currency introduced a new regulatory proposal ahead of a U.S. Senate Banking Committee oversight hearing. The initiative seeks to implement key provisions of last year’s stablecoin legislation and signals a more structured federal approach to digital dollar oversight.
The OCC’s proposal is designed to fulfill much of its rulemaking mandate under the Guiding and Establishing National Innovation for U.S. Stablecoins Act, known as the GENIUS Act. The framework outlines standards for reserve management, asset custody, redemption procedures and registration requirements for U.S. stablecoin issuers.
Comptroller Jonathan Gould said the agency had given careful consideration to building a regulatory structure that allows the stablecoin sector to grow in a safe and sound manner. The proposal also notes that additional coordination with the Treasury Department will be required on anti money laundering and sanctions compliance measures.
The Federal Reserve signaled parallel efforts. In prepared testimony, Federal Reserve Vice Chair for Supervision Michelle Bowman stated that the central bank is working with other regulators to develop capital and liquidity standards for stablecoin issuers as required by the GENIUS Act. The objective, she said, is to provide clarity around digital asset treatment within the banking system and ensure that supervised institutions can responsibly engage with emerging technologies.
The regulatory shift marks a contrast from earlier years, when U.S. banking agencies adopted a more cautious posture toward crypto related activities. Policymakers now appear focused on integrating stablecoins into existing financial frameworks rather than excluding them from regulated institutions.
However, the hearing also highlighted political tensions surrounding digital asset policy. Senator Elizabeth Warren raised concerns about recent bank charter approvals and questioned whether regulators were maintaining independence in evaluating applications tied to digital asset businesses. Lawmakers pressed regulators for transparency regarding specific applications connected to crypto affiliated firms.
Federal Deposit Insurance Corporation Chairman Travis Hill, whose agency has also begun advancing stablecoin related proposals, testified that the emerging stablecoin sector has not materially threatened traditional bank deposits. Committee Chairman Tim Scott cited data showing continued growth in U.S. banking deposits, challenging arguments that digital dollar products are siphoning liquidity from the conventional system.
The broader discussion reflects growing recognition that stablecoins are becoming embedded in payment flows and financial infrastructure. Policymakers are increasingly treating them as systemic components rather than fringe instruments. Clear reserve rules, redemption rights and capital standards are seen as prerequisites for scaling responsibly.
As Congress continues oversight and regulators finalize implementing rules, the direction of U.S. stablecoin policy will likely influence global digital asset markets. With coordinated proposals from the OCC, Federal Reserve and FDIC, the United States appears to be moving toward a unified supervisory approach that could shape how stablecoin issuers operate within the regulated banking ecosystem.
