OCC Finalizes GENIUS Act Rules for Stablecoin Issuers
Written with artificial intelligence.
The Office of the Comptroller of the Currency has established final rules for payment stablecoin issuance and custody activities under the GENIUS Act, which will come into effect on January 18, 2027. Issuers are required to maintain reserves equivalent to their outstanding stablecoins and process redemption requests within two business days.
Overview of the Final Rule
The Office of the Comptroller of the Currency (OCC) finalized rules on Wednesday regarding payment stablecoin reserves and associated custody practices, implementing the GENIUS Act framework. This initiative aims to provide a structured approach to stablecoin innovation while ensuring strong standards for reserve management and redemption processes.
Key Requirements for Issuers
Under the new rule, stablecoin issuers must adhere to the following:
- Maintain reserves equal to the total amount of outstanding stablecoins.
- Process redemption requests within two business days.
These regulations apply to national banks, federal savings associations, federal branches, and their subsidiaries, as well as nonbank entities that meet federal qualified issuer criteria. State-qualified issuers are also covered if the OCC has regulatory authority over them.
Important Provisions
The OCC's final rule includes a ban on issuers offering interest or yield for holding stablecoins, reinforcing the prohibition against such practices. Additionally, the agency has removed a proposed presumption that certain arrangements with affiliates violate the yield ban, while retaining authority to address potential evasion of this prohibition.
The OCC will announce the timeline for processing issuer applications and waiver requests in a separate communication. Regulatory requirements related to the Bank Secrecy Act, anti-money laundering, and sanctions will also be addressed in forthcoming rulemaking.
Implementation Timeline
The rules and the GENIUS Act will officially take effect on January 18, 2027. Comptroller of the Currency Jonathan Gould emphasized the intention to deliver a clear framework for stablecoin operations, balancing innovation with risk management.