U.S. Stablecoin Rules Tighten as Market Hits $318B

TLDR

• U.S. regulators released a proposal outlining stricter enforcement of the GENIUS Act for stablecoins.
• The Office of the Comptroller of the Currency detailed limits on branding and product structures.
• The framework may require licensed issuers to operate only one stablecoin brand.
• Regulators reinforced a ban on interest and reward programs tied to stablecoin balances.
• Issuers must hold one-to-one reserves in cash or short-term U.S. Treasury bills.

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U.S. regulators have moved to enforce stricter oversight on the fast-growing stablecoin market valued at $318 billion. On February 25, 2026, the Office of the Comptroller of the Currency released a proposal detailing the enforcement of the Guiding and Establishing National Innovation for U.S. Stablecoins Act. The framework outlines tighter supervision, limits product structures, and reinforces bans on yield programs.

From Tech Tokens to Bank-Like Money Under New Stablecoin Rules

The proposal states that regulators may require a licensed issuer to operate only one stablecoin brand. Officials aim to prevent multiple consumer-facing tokens that resemble deposit liabilities. The Office of the Comptroller of the Currency wrote that stablecoins must “operate within a clear supervisory perimeter.”

Infrastructure firms such as Paxos, Stripe, and Anchorage Digital Bank currently support branded digital dollar launches. However, the new interpretation could restrict white-label issuance models. Regulators argue that fragmented branding may shift funds from banks into privately issued digital instruments.

The framework requires issuers to hold reserves matched one-to-one with liquid assets. Eligible assets include cash, Federal Reserve balances, and short-dated U.S. Treasury bills. Issuers must process redemptions at face value within two business days.

Executives must certify monthly disclosures under the proposed standards. New applicants must also meet minimum capital requirements. The agency has opened a 60-day public comment period for feedback.

Yield Ban and Market Leaders Tether and USD Coin

The proposal reinforces a ban on paying interest or rewards to stablecoin holders. Issuers cannot distribute yield directly or through affiliated programs. The agency stated that issuers must prove that no indirect reward structure bypasses the law.

This approach affects products linked to PayPal USD and reward features tied to USD Coin. Regulators will review any arrangement connected to balance-based incentives. The framework seeks to remove yield-bearing digital dollars from the regulated U.S. market.

By February 2026, the stablecoin market reached about $318 billion in total capitalization. Tether holds the largest share of outstanding supply. However, market data shows capital shifting toward issuers aligned with the new framework.

USD Coin has positioned itself within the regulated structure outlined by the GENIUS Act. U.S. agencies have also clarified that compliant stablecoins do not qualify as securities or commodities. The statute becomes effective in January 2027, while final operational rules may take effect earlier.

Stablecoin issuers now hold more than $200 billion in short-term U.S. Treasury bills. This places them among active buyers of government debt. The Office of the Comptroller of the Currency will review public comments before issuing final rules.

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