Stablecoin Issuers Could Break the Rules Without an OCC Waiver

TLDR

• Existing US stablecoin issuers awaiting OCC approval need a granted waiver to keep issuing after Jan. 18, 2027.
• A pending application alone will not authorize continued issuance once the GENIUS Act takes effect.
• Waivers are capped at 12 months and may be shorter, depending on each applicant’s needs.
• The OCC generally expects to grant waivers to issuers already operating in the US with substantially complete applications.
• As of Oct. 21, the OCC had not opened intake for applications or waivers, pending final OMB approval.

The Office of the Comptroller of the Currency has laid out a waiver process for existing US payment stablecoin issuers. The guidance, released on Oct. 21, applies to issuers that are waiting for the agency’s approval.

The OCC warned that submitting an application alone will not allow these issuers to keep issuing stablecoins after the GENIUS Act takes effect on Jan. 18, 2027. Without a granted waiver, they could be in violation of the law.

The waiver guidance came alongside the OCC’s final GENIUS Act framework, announced the same day. The final rule also takes effect on Jan. 18, 2027.

Who Qualifies for OCC Waiver Relief

Under section 15.30(g) of the rule, eligible applicants must ask for a waiver in writing. They must also have a substantially complete application pending with the OCC on or before Jan. 18.

The agency defines a substantially complete application as one with enough information for it to decide whether the applicant meets the approval criteria.

Eligible groups include subsidiaries whose insured depository institution parents have applied on their behalf. Issuers applying for federal qualified payment stablecoin issuer status are also covered.

The OCC said it generally expects to grant waiver requests from existing issuers that meet these conditions. However, it can still deny a request if its review finds more compelling reasons to do so.

Limits on Stablecoin Waivers

Waivers can last no more than 12 months, starting Jan. 18, 2027. The agency expects each waiver to last only as long as needed to address the applicant’s stated reasons.

This means applicants should not assume they will receive a full year of relief.

A waiver of prior approval also does not automatically excuse issuers from other requirements. Covered applicants can ask for relief from additional provisions they cannot meet by the effective date.

The OCC said it has not found any compelling reasons that apply generally to granting those additional requests. Each one would be reviewed separately.

The favorable treatment is focused on issuers already operating in the US. The OCC said it expects new issuers to begin US operations only after they receive approval.

The agency added that it has found no generally applicable grounds for granting waivers to issuers that are not already operating or issuing in the country.

Once intake opens, covered applicants are expected to request waivers as soon as practicable. The OCC said it will review each request on its merits and generally act by Jan. 18.

The agency stressed that even a timely application could leave an existing issuer in violation of the prior approval requirement. That would happen if the issuer keeps issuing without a granted waiver.

As of Oct. 21, the OCC’s application page said intake was still closed. The agency is waiting for final Office of Management and Budget approval of the information collection tied to the application forms.

The OCC said it will announce when it begins accepting applications through a press release and an update to its application page.

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