US regulator urges community banks to issue payment stablecoins

The United States Office of the Comptroller of the Currency invited community banks on October 26, 2026, to enter the payment stablecoin market, according to Cointelegraph. The announcement follows the regulator finalizing its rules under the Guiding and Establishing National Innovation for US Stablecoins Act, also known as the GENIUS Act. In a statement on social media platform X, the regulator stated that it is encouraging the development of payment stablecoin capabilities within the community banking sector. [1]

The OCC issued this invitation despite an active dispute with the sector. Cointelegraph reported that community banks already have a pending lawsuit against the OCC concerning its cryptocurrency charter applications. [1]

As FTMQ Crypto reported earlier, the OCC finalized its rules for payment stablecoins under the GENIUS Act, which face criticism from banking groups. The American Bankers Association argued that the OCC interpretation of stablecoin yield rules went against congressional intent after the regulator removed a provision creating a presumption against third-party yield arrangements. [2]

The regulatory framework established under the GENIUS Act is scheduled to take effect in mid-January, according to FTMQ Crypto and Cointelegraph. [1][2]