OCC finalizes GENIUS Act stablecoin rules, effective January 2027
OCC sets final stablecoin rules
The US Office of the Comptroller of the Currency (OCC) finalized rules on Wednesday for payment stablecoin reserves, redemptions and related custody activities. A stablecoin is a crypto token designed to keep a steady value, usually tied to the US dollar.
The rules implement the GENIUS Act for entities under the OCC's jurisdiction. Both the final rule and the GENIUS Act take effect on Jan. 18, 2027.
Key points
- Issuers must hold reserves worth at least as much as their outstanding stablecoins.
- Redemption requests must generally be processed within two business days.
- The rule covers national banks, federal savings associations and federal branches and their subsidiaries.
- It also applies to nonbank firms seeking or receiving federal qualified issuer status, and to state-qualified issuers when the OCC has regulatory or enforcement authority over them.
- The OCC dropped a proposed presumption that certain arrangements involving affiliates or related third parties violate the law's yield ban.
What the OCC says
Comptroller of the Currency Jonathan Gould said: "We are providing a clear, practical framework for payment stablecoin innovation, with strong standards for reserve backing, redemption, and risk management."
The final rule keeps the ban on issuers paying holders interest or yield solely for holding, using or retaining their stablecoins. The OCC said it retains authority to act against attempts to evade that prohibition.
What is confirmed
The OCC issued the final rule on Wednesday covering payment stablecoin reserves, redemptions and related custody activities. The reserve and redemption standards, the scope of covered entities, and the Jan. 18, 2027 effective date are confirmed in the agency's announcement.
What is still unclear
The OCC said it will announce separately when it begins processing issuer applications and waiver requests. The agency and the Treasury will address Bank Secrecy Act, anti-money-laundering and sanctions requirements in separate rulemaking, so those details are not yet set.
Why it matters
The rule sets reserve and redemption standards for stablecoin issuers under the OCC's authority, and it keeps the ban on paying yield for holding stablecoins. It also clarifies which banks, federal branches and nonbank issuers fall under the framework.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.