OCC finalizes GENIUS Act rules for stablecoin issuers

The Office of the Comptroller of the Currency finalized rules Wednesday for payment stablecoin reserves, customer redemptions and certain custody activities under the GENIUS Act. The rules and the act will take effect Jan. 18, 2027.

The framework requires issuers to hold reserves worth at least as much as their outstanding stablecoins. Issuers generally must process customer redemption requests within two business days.

The rules apply to national banks, federal savings associations, federal branches and their subsidiaries. They also cover nonbank companies seeking or holding federal qualified issuer status, along with state-qualified issuers when the OCC has regulatory or enforcement authority over them.

In a statement, Comptroller of the Currency Jonathan Gould described the framework as providing standards for reserve backing, redemptions and risk management. “We are providing a clear, practical framework for payment stablecoin innovation, with strong standards for reserve backing, redemption, and risk management,” he said.

The final rule retains the GENIUS Act’s ban on issuers paying holders interest or yield solely for holding, using or retaining their stablecoins. The OCC removed a proposed presumption that certain arrangements involving affiliates or related third parties would violate the ban. The agency retains authority to act against attempts to evade the prohibition.

The OCC will separately announce when it begins accepting issuer applications and waiver requests. The agency and the Treasury Department will address Bank Secrecy Act, anti-money-laundering and sanctions requirements in separate rulemaking.