Overview
- The proposal bars issuers from paying yield to holders and creates a rebuttable presumption against arrangements that route such payments through affiliates or related third parties.
- The OCC presents two reserve diversification approaches, including a principles-based option with a safe harbor that targets at least 10% daily liquidity, 30% weekly liquidity, and limits of 40% of reserves at a single institution.
- Issuers must publish monthly reserve reports subject to registered public accounting firm examination and CEO or CFO certification, and they must disclose redemption policies with circuit breakers when requests exceed 10% of outstanding supply.
- Prudential standards include a de novo capital floor of at least $5 million for three years and a separate 12‑month operating expense backstop, with restrictions on net new issuance for noncompliance.
- Application pathways cover federal authorization, foreign issuer registration subject to a Treasury comparability determination, and state-qualified issuers that must notify at $10 billion outstanding and transition or halt net new issuance; comments are due May 1, 2026.