🚨 New OCC Rules Could Mandate 7-Day Wait for Stablecoin Redemptions
The Office of the Comptroller of the Currency (OCC) has proposed a new framework for stablecoin redemptions to ensure market stability. Under section 15.12, the standard deadline for an issuer to convert tokens into bank dollars would be 2 business days.
However, if redemption requests exceed 10% of the total outstanding supply within a 24-hour period, the deadline automatically extends to 7 calendar days. This rule aims to allow issuers like Circle to sell reserves in an orderly way without causing massive price crashes during high-demand or "bank run" scenarios.
While this affects direct redemptions from the issuer, secondary market trading on exchanges can continue. However, liquidity providers might pass these delays or higher fees to users if their own capital is committed while waiting for the issuer to pay out.
#Stablecoins #Regulation #OCC #USDC
The Office of the Comptroller of the Currency (OCC) has proposed a new framework for stablecoin redemptions to ensure market stability. Under section 15.12, the standard deadline for an issuer to convert tokens into bank dollars would be 2 business days.
However, if redemption requests exceed 10% of the total outstanding supply within a 24-hour period, the deadline automatically extends to 7 calendar days. This rule aims to allow issuers like Circle to sell reserves in an orderly way without causing massive price crashes during high-demand or "bank run" scenarios.
While this affects direct redemptions from the issuer, secondary market trading on exchanges can continue. However, liquidity providers might pass these delays or higher fees to users if their own capital is committed while waiting for the issuer to pay out.
#Stablecoins #Regulation #OCC #USDC
🚨 US Bankers Sue to Overturn Crypto Trust Bank Rules
The Independent Community Bankers of America (ICBA) has filed a federal lawsuit against the OCC to invalidate rules that allow crypto firms to obtain national trust bank charters. The lawsuit, filed in Washington, targets the OCC’s national trust bank rule and Interpretive Letter 1176, arguing the regulator exceeded its authority.
The ICBA claims the OCC is allowing non-depository crypto businesses to operate under a lighter regulatory framework than traditional insured banks. According to the complaint, 13 of the 21 trust banks approved or conditionally approved by the OCC are tied to the crypto industry.
#CryptoNews #OCC #Regulation #Banking
The Independent Community Bankers of America (ICBA) has filed a federal lawsuit against the OCC to invalidate rules that allow crypto firms to obtain national trust bank charters. The lawsuit, filed in Washington, targets the OCC’s national trust bank rule and Interpretive Letter 1176, arguing the regulator exceeded its authority.
The ICBA claims the OCC is allowing non-depository crypto businesses to operate under a lighter regulatory framework than traditional insured banks. According to the complaint, 13 of the 21 trust banks approved or conditionally approved by the OCC are tied to the crypto industry.
#CryptoNews #OCC #Regulation #Banking