US OCC Finalizes GENIUS Act Rules for Payment Stablecoins

These finalized rules specify that issuers must hold reserves with a value at least equal to the amount of stablecoins they have issued, and generally must fulfill redemption requests within two business days.

The regulations apply to national banks, federal savings associations, federal branches and their subsidiaries, as well as nonbank entities that seek or have obtained federal qualified issuer status, as outlined in the agency’s announcement. Additionally, state-level qualified issuers fall under the rules if the OCC holds regulatory or enforcement authority over them.

Both the rules and the GENIUS Act will become effective on January 18, 2027.

"We are delivering a clear and practical framework to foster innovation in payment stablecoins, with robust standards to ensure reserve backing, redemption procedures, and risk management," stated Comptroller of the Currency Jonathan Gould.

The OCC abandoned an earlier proposed assumption that certain transactions involving affiliates or related third parties breach the law’s yield prohibition. The final regulation maintains the ban on issuers paying interest or yield to holders solely for the possession, usage, or retention of stablecoins. The agency also reserves the authority to act against efforts to circumvent this prohibition.

The OCC indicated it will announce separately when it starts accepting issuer applications and waiver petitions. The agency and the Treasury Department will address compliance with the Bank Secrecy Act, anti-money laundering, and sanctions obligations through separate rulemaking processes.

The rules implemented by the OCC provide a solid regulatory foundation to support the stability and transparency of payment stablecoins, which is essential for their broader adoption and the integrity of the financial system.