The U.S. OCC has released its final rule on stablecoins, lowering liquidity requirements for reserves, while banks warn it could lead to billions in deposit outflows.

The Office of the Comptroller of the Currency (OCC) released its 721-page final rule on stablecoins on October 21. Treasury Secretary Scott Bessent likened it to the National Currency Act of 1863, calling it a cornerstone for the U.S. as a global crypto capital. The new rule reduces the minimum immediate available liquidity for stablecoin issuers from 10% to 5% and eliminates the 0.5% insurance deposit allocation requirement. The American Bankers Association (ABA) responded on the same day, stating that the final rule leaves room for indirect stablecoin incentives, which could lead to deposit outflows, thereby weakening banks' lending capacity. It warned that "attempting to address deposit outflows and economic damage after they occur is the wrong approach." The White House Council of Economic Advisers (CEA) model estimates that effectively prohibiting yield could increase bank lending by $2.1 billion, potentially reaching $531 billion under extreme assumptions. The new rule will take effect on January 18, 2027.