Banks Request Enhanced Risk Tests

Banks want nonbank stablecoin applicants tested on governance, cybersecurity and other risk controls before licensing.

“For example, the OCC should require a non-IDI applicant to demonstrate the adequacy of its governance, risk management procedures, operational resilience, cybersecurity practices and recovery planning”

Bank Groups Push for Public Comment

Bank groups want stablecoin issuer applications opened to public comment and foreign issuers to face home-country capital requirements.

“The banks have also contended that foreign payment stablecoin issuers should face home-country capital requirements consistent with those applied to domestic issuers”

First Comment Period Closes

The first comment period on the OCC’s proposed application forms for payment stablecoin issuers closed Friday (Sept. 25).

Second Comment Period Coming

A second 30-day comment period will give the industry another chance to respond to bank groups’ requests.

Bank Groups Explain Why

Bank groups say nonbank applicants may not be subject to the same federal prudential framework as insured depository institutions.

“Nonbank applicants "may not be subject to the same robust federal prudential framework to which every IDI is subject"”

Stablecoin Risk Focus

Banks want stablecoin issuers to demonstrate compliance with consumer protection laws and regular examinations.

“The letter said the goal should be to preserve stablecoins for "payments and settlements" while avoiding "undue and unnecessary risks" to stablecoin holders and users”