OCC finalizes GENIUS Act stablecoin rule, effective Jan. 18

Key points

• OCC finalized its GENIUS Act rule on Oct. 21; it takes effect Jan. 18, 2027
• Final rule drops a proposed presumption on affiliate and third-party yield arrangements
• Issuers must hold full reserves and generally redeem within two business days, per Cointelegraph
• AML and sanctions rules will come in a separate OCC-Treasury rulemaking

The Office of the Comptroller of the Currency (OCC) finalized its rule implementing the GENIUS Act on Wednesday, setting requirements for payment stablecoin issuers and certain custody activities. The rule and the Act both take effect Jan. 18, 2027, according to the OCC’s news release.

The Block reported that the OCC is the first regulator to finalize its stablecoin rule under the law.

What the OCC rule covers

The rule applies to permitted payment stablecoin issuers and foreign payment stablecoin issuers under OCC jurisdiction, as well as certain custody activities by OCC-supervised entities, the agency said. It addresses all the regulations the OCC is required to write under the Act except those on the Bank Secrecy Act, anti-money laundering and sanctions, which will be handled in a separate rulemaking with the Treasury Department. The OCC said it received hundreds of comments on the proposal.

According to Cointelegraph, covered entities include national banks, federal savings associations, federal branches and their subsidiaries, and nonbank firms that seek or hold federal qualified issuer status. State-qualified issuers are covered where the OCC has regulatory or enforcement authority over them. Cointelegraph also reported that issuers must hold reserves at least equal to their outstanding stablecoins and generally must process redemption requests within two business days.

Comptroller of the Currency Jonathan Gould said the rule provides “a clear, practical framework for payment stablecoin innovation.” Treasury Secretary Scott Bessent called the Act a “watershed moment in American finance,” the OCC said.

Changes on stablecoin rewards

The final rule departs from the proposal on stablecoin rewards. The proposal followed the GENIUS Act in barring issuers from paying interest or yield on stablecoins, but it also presumed that certain arrangements with affiliates or third parties could be unlawful. The final rule drops that presumption, according to Cointelegraph and The Block.

The Block reported that a regulatory official said the proposed language assumed evasion was likely rather than reflecting a market the agency had observed. The official said rewards would be assessed case by case, and that the OCC can take enforcement action if it sees a clear evasion of the statutory ban. Cointelegraph reported that the ban on paying holders solely for holding, using or retaining stablecoins remains.

Rewards have been a central dispute between banks and crypto firms, The Block noted. Banks argue the payments could pull deposits from community institutions. The Act did not bar platforms such as Coinbase from offering rewards. The broader CLARITY Act market structure bill has stalled after a Senate procedural vote failed in September, The Block said.

What happens next

The OCC said it will announce separately when it begins accepting and processing issuer applications and waiver requests. It issued related bulletins on the final rule (2026-50), waiver and application guidance (2026-51) and revised reporting forms (2026-52).

The agency said it will continue coordinating with other agencies implementing the Act and will monitor the industry, adjusting its supervisory and regulatory framework as needed. The Treasury and OCC rulemaking on Bank Secrecy Act, anti-money laundering and sanctions requirements is still to come.