OCC outlines waiver route for existing US stablecoin issuers awaiting approval

The Office of the Comptroller of the Currency (OCC) outlined a waiver process on Oct. 21 for existing US payment stablecoin issuers awaiting approval. The OCC warned that submitting an application does not authorize continued issuance once the GENIUS Act becomes effective on Jan. 18, 2027. An existing issuer could violate the prior approval requirement by continuing issuance without a granted waiver, even after applying on time.

The OCC generally expects to grant prior approval waivers to existing issuers operating in the US that file substantially complete applications before the effective date. The OCC can nevertheless reject a request if the review reveals stronger reasons for denial. The guidance was issued alongside the final GENIUS Act framework announced that day. The final rule becomes effective on Jan. 18, 2027.

Section 15.30(g) requires eligible applicants to submit written waiver requests. Eligible applicants must also have substantially complete applications pending before the OCC no later than Jan. 18. An application is substantially complete when the information supplied allows the OCC to assess the relevant approval criteria. Eligible applicants include subsidiaries whose insured depository institution parents have submitted applications on behalf of those subsidiaries. Issuers seeking federal qualified payment stablecoin issuer status are also eligible.

Waiver relief cannot exceed 12 months starting on Jan. 18, 2027. The OCC expects each waiver to cover only the time needed to address the applicant's justification. Applicants therefore cannot count on receiving a full year of relief. Covered applicants may also request waivers from other provisions that the applicants cannot meet by the effective date. However, the OCC says no broadly applicable compelling reasons have been identified for granting those additional requests.

The favorable approach focuses on issuers already operating in the US. The OCC generally expects prospective issuers to wait for approval before beginning US operations. The OCC has identified no broadly applicable compelling grounds for granting waivers to issuers not already operating or issuing in the US. The OCC expects covered applicants to seek waivers as soon as practicable after applications open. The OCC says requests will receive individual consideration, with decisions generally expected by Jan. 18.

As of Oct. 21, the OCC's application page said applications were not yet being accepted. The page cited pending final Office of Management and Budget approval for the information collection tied to the application forms. The OCC will announce the opening of applications through a press release and revise the application page.