# OCC Urges Community Banks to Build Stablecoin Capacity Ahead of 2027 Rules By Riza Dagoc Canonical URL: https://www.tokenpost.com/news/regulation/41367 Published: 2026-10-26T21:42:33.000Z Updated: 2026-10-26T21:42:33.000Z Section: Regulation > The rules take effect Jan. 18, 2027. Applications can open after the Office of Management and Budget approves the information collection tied to the forms. The Office of the Comptroller of the Currency is urging community banks to build payment stablecoin capabilities as federal approval requirements for U.S. issuers approach in 2027. On Monday, Oct. 26, the OCC invited banks to consider seeking issuer approval, either directly or through a subsidiary. The appeal is part of the agency’s Community Bank Comeback initiatives. “The OCC wants community banks to help shape the future of payments and is encouraging the development of payment stablecoin capabilities within the community banking sector,” the OCC said. The final rule was issued Oct. 21 and takes effect Jan. 18, 2027. Beginning then, a person generally must be approved as a permitted payment stablecoin issuer to issue payment stablecoins in the United States, and unauthorized issuance carries criminal penalties. The OCC’s earlier [guidance under the GENIUS Act for community banks]() tied issuer requirements to business models and risk profiles. Banks can apply after the Office of Management and Budget (OMB) grants final approval to the information collection connected to the application forms. An opening date has not been announced. Applicants must describe their business plans, management, reserves, issuance and redemption operations, risk controls, capital and liquidity, compliance programs, and third-party risks. Within 30 days of a filing, applicants will be told whether their submissions are substantially complete; the OCC aims to act within 120 days of that determination. An issuer already operating in the United States with a substantially complete application pending by Jan. 18, 2027, may request a waiver from prior approval. The OCC generally expects to grant such waivers to existing U.S. issuers. Prospective issuers generally should wait for approval before beginning U.S. operations. The rule requires issuers to keep at least 5% of reserve assets in demand or other on-demand deposits, payable-on-demand share accounts, or funds at a Federal Reserve Bank. It does not direct issuers to place reserve funds with community banks, and community banks may decline to take issuers as customers. Deposits backing stablecoin reserves could currently be less stable funding sources than other deposits. ## Links in this article - [guidance under the GENIUS Act for community banks](https://www.tokenpost.com/news/regulation/39041)