The U.S. Office of the Comptroller of the Currency is encouraging community banks to apply to become issuers of payment stablecoins, but banking groups are opposing the move.

The U.S. Office of the Comptroller of the Currency (OCC) is encouraging community banks to develop payment stablecoin businesses and apply to become approved payment stablecoin issuers. Last week, the OCC finalized rules related to the GENIUS Act, which will take effect in January next year. Several banking groups oppose the OCC's proposed rules regarding stablecoin yields. The Independent Community Bankers Association sued the OCC earlier this month, alleging that crypto companies are not subject to equivalent regulatory requirements.