US OCC Proposed Stablecoin Regulation: Stablecoin Redemption Must Not Exceed 2 Business Days; Daily Redemption Exceeding 10% of Circulating Supply May Be Extended to 7 Days

PANews reported on February 27 that the US Office of the Comptroller of the Currency (OCC) recently released a proposed rule spanning 376 pages, implementing the regulatory framework for payment stablecoin issuance and custody activities under the GENIUS Act. The rule clearly defines “payment stablecoin,” specifies the scope of applicable entities (including federal/state qualified issuers and foreign issuers), requires 1:1 high-liquidity reserve assets, imposes daily liquidity and concentration constraints, and prohibits the payment (or disguised payment) of interest or yield to token holders, including explicit restrictions on rewards, which may impact certain exchanges. The proposed rule requires payment stablecoins to be redeemable within no more than two business days under normal circumstances, and automatically extends the redemption period to seven calendar days if daily redemptions exceed 10% of the circulating supply. In comparison, USDC currently adopts a near T+0 redemption model (rapid settlement on business days) and does not have a similar “automatic extension” mechanism. The proposed rule also includes information disclosure and audit requirements, as well as OCC’s federal regulatory takeover and exemption mechanism for state-qualified stablecoin issuers once they reach the $10 billion issuance threshold.