OCC’s Support for Community Banks and Stablecoins
The Office of the Comptroller of the Currency (OCC) has reaffirmed its support for community banks to forge alliances with stablecoin companies, signaling a commitment to innovation within the financial sector. In a recent statement shared on platform X, the OCC emphasized that such collaborations could enhance the range of services offered by smaller banks, enabling them to be more competitive against larger financial institutions.
Regulatory Shift and Engagement with Digital Assets
This shift in the OCC’s regulatory stance marks a departure from a previous, more conservative approach. While the agency had adopted a more cautious viewpoint post-Acting Comptroller Brian Brooks’ tenure, recent developments reflect an intention to engage more actively with digital assets while balancing the necessity for financial stability. The OCC announced its plans to review and adjust its supervisory regulations to better integrate and encourage technological advancements in banking as well as to support community banks.
Remarks from the Comptroller
Jonathan V. Gould, who took office as the 32nd Comptroller of the Currency in July 2025, highlighted the crucial role community banks play in delivering key financial services and noted that stablecoins could significantly enhance these institutions’ ability to meet the payment demands of the communities they serve.
Historical Context and Recent Developments
This approach builds on the OCC’s history of providing guidance on digital assets, which saw a favorable outlook during certain periods in 2020 and early 2021. The agency previously allowed for services such as cryptocurrency custody and stablecoin reserve management. However, following leadership changes, the OCC had imposed more stringent measures, requiring banks to secure written non-objection before venturing into cryptocurrency activities. This policy was revised in March 2025, easing restrictions and encouraging greater involvement in crypto-related services.
Future Outlook and Concerns
The earlier measures and subsequent shifts are underscored by the recently instituted Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025 (GENIUS Act), positioning the OCC as a principal regulatory body for federally sanctioned non-bank stablecoin issuers. While some critics express concerns about potential risks faced by community banks due to these changes, many proponents argue that stablecoins enhance transaction efficiency, lower settlement costs, and improve access to financial resources—benefits that could solidify the standing of smaller banking entities within an increasingly competitive marketplace.
