From Pymnts · PYMNTS · · 1m 10s
Regulators Offer Banks Stablecoin Paths
Banks get three regulatory routes to issue stablecoins.
In brief
Banks get three regulatory routes to issue stablecoins. Three U.S. regulators outline distinct paths for banks to issue stablecoins with different oversight requirements. Originally reported by Pymnts.
Regulators propose stablecoin paths
The Federal Reserve, Office of the Comptroller of the Currency, and Federal Deposit Insurance Corp. each outline how banks can issue stablecoins.
Three regulatory approaches
Banks can choose national banks with OCC oversight, FDIC-supervised state banks, or Federal Reserve-supervised state member banks for stablecoin issuance.
Fed’s stablecoin rules
Supervised issuers must fully back stablecoins with eligible assets like short-term Treasury bills and maintain capital and risk management standards.
OCC and FDIC proposals
The OCC proposed weekly and quarterly reporting forms for stablecoin issuers, while the FDIC clarified insurance treatment for deposits held as stablecoin reserves.
Commercial demand grows
SoFi Technologies reported live stablecoin settlement processing over $25 billion annually through its Mastercard program, and U.S. Bank completed a cross-border pilot with USBDC.
Banks weigh regulatory paths
Banks will choose stablecoin issuance routes based on commercial demand, not regulatory differences, as the economics determine adoption.
The short version
Three U.S. regulators outline distinct paths for banks to issue stablecoins with different oversight requirements.
