Overview
- The proposal covers entities under OCC authority and requires prospective issuers to obtain OCC approval, sets a 120‑day review with deemed approval if no decision, provides for registration of certain foreign issuers, and allows qualifying issuers with $10 billion or less to opt into approved state regimes.
- Issuers must maintain segregated one‑to‑one reserves in specified high‑quality assets, meet diversification and liquidity thresholds including a 20‑day maximum weighted‑average maturity, and large issuers over $25 billion must hold part of reserves at insured institutions.
- Stablecoins must be redeemable at par within two business days with a publicly posted redemption policy, seven days’ notice for fee changes, and an automatic extension mechanism for orderly redemptions during stress.
- The rule bans paying interest or yield to holders, presumes violations for related‑party workarounds, forbids implying U.S. government backing, and bars rehypothecation.
- Prudential safeguards include at least $5 million in capital for new issuers subject to OCC adjustment, an operational backstop equal to 12 months of expenses with wind‑down triggers if shortfalls persist, and custody standards covering control of tokenized assets, creditor protection, and permitted use of sub‑custodians.