FOR IMMEDIATE RELEASE: October 21, 2026
CONTACT: Jarice Thompson, jarice@ourfinancialsecurity.org
OCC Finalizes Weak Stablecoin Rule, Caves to Crypto Industry Demands
WASHINGTON, D.C. – Today, the Office of the Comptroller of the Currency (OCC) released its final rule implementing portions of the GENIUS Act—the crypto industry-drafted legislation passed last year that established a weak regulatory regime for crypto assets known as stablecoins. The OCC’s proposed rule would have posed significant risks to customers and the economy. The rule lacked sufficient reserve backing for stablecoins, made it unnecessarily difficult for people to redeem stablecoins on demand, and failed to safeguard financial stability. Despite these concerns, the OCC further weakened the proposal, instead of strengthening it.
“The OCC abdicated its responsibility to deliver strong rules to protect people and the economy from stablecoin risks. Rather than improving a weak proposal, it doubled down on giveaways to the crypto industry, imperiling customers and the economy alike,” said Mark Hays, associate director for crypto and fintech with Americans for Financial Reform Education Fund and Demand Progress Education Fund.
The OCC watered down the final rule in a few key ways that benefit the crypto industry. It further weakened the reserve requirements intended to make sure stablecoins have adequate financial backing. The final rule allows issuers to hold longer-term investments as reserves, which could boost industry profits but reduce liquidity, which could make it harder for people to redeem stablecoins on demand from issuers.
It also allows issuers to withdraw any reserve surpluses at any time, rather than once a month as the original rule proposed. This could entice unscrupulous stablecoin issuers to withdraw reserves in search of more lucrative, riskier investment opportunities—putting the stability of their coins at greater risk. Lastly, the final rule removed a requirement for issuers to extend their timelines for redeeming customer’s coins during a surge in withdrawal requests—giving issuers more leeway to pause or freeze those requests, even if it means increasing customer losses when a stablecoin loses value.
“These changes demonstrate what we knew all along: This is about promoting the crypto industry at the expense of people who will face real financial losses during the next inevitable crypto crash,” said Hays.
The weak final rule is yet another example of how the crypto industry’s collusion with the Trump administration is crafting a loophole-ridden regulatory environment that rewards some of crypto’s worst actors, fosters crypto corruption, and will accelerate the role that stablecoins and crypto platforms play in facilitating illicit finance.
“The administration is crafting rules that are a giveaway to crypto billionaires and the Trump family crypto empire,” said Hays. “The public is sick of the political corruption and corporate influence, but the new rules are a handout to special interests and a huge risk to people and the economy.””
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