The Office of the Comptroller of the Currency (OCC) has released a draft of new regulations under the GENIUS Act, aiming to reshape the stablecoin market by banning reserve restaking and imposing strict capital requirements. The 376-page proposal outlines a licensing system for stablecoin issuers, with public comments due by May 1, 2026, and a finalization target of July 18, 2026. Key provisions include a prohibition on using reserve assets for collateralization, effectively severing ties between DeFi yield strategies and compliant stablecoins. The draft also mandates a 1:1 reserve ratio and introduces a waterfall clause for mandatory liquidation if capital standards are not met for two consecutive quarters. This framework is expected to favor bank-affiliated issuers, potentially sidelining non-bank entities like Tether, which faces uncertainty regarding its regulatory status in the U.S. The OCC's proposal marks a significant regulatory shift, aiming to integrate stablecoins into the existing banking system and protect the deposit base. The draft's impact could lead to market consolidation, with larger, well-capitalized institutions gaining dominance, while smaller crypto-native issuers may struggle to comply.