The Office of the Comptroller of the Currency (OCC) has finalized its rule implementing the GENIUS Act, establishing a federal framework for payment stablecoins. The rule, finalized on October 21, 2026, sets federal standards for payment stablecoin issuers under the OCC’s jurisdiction.
Key Requirements
The rule takes effect on January 18, 2027, the same day the GENIUS Act becomes effective. The statute, formally the Guiding and Establishing National Innovation for U.S. Stablecoins Act, was enacted on July 18, 2025.
The rule applies to national banks, federal savings associations, certain subsidiaries of those institutions, and foreign payment stablecoin issuers.
Issuers must hold at least 1:1 backing in eligible, high-quality assets, including US currency, insured deposits, and short-term Treasury securities. They must also maintain clear redemption policies, with redemptions generally completed within two business days.
Yield and Reserve Flexibility
Direct interest payments tied to simply holding a payment stablecoin are prohibited. However, the final rule removes a proposed rebuttable presumption covering rewards or yield programs run through affiliates or third parties. Such arrangements will now be reviewed case by case. The rule also gives permitted issuers some flexibility around reserve assets.
Exclusions and Application Process
The rule does not cover Bank Secrecy Act, anti-money laundering, or sanctions requirements; Treasury will handle those through separate regulations.
Applications and waivers can be submitted once the Office of Management and Budget approves the related information collections. Issuers with substantially complete applications pending by the rule’s effective date can seek waivers.
Industry Implications
For stablecoin holders, the rule provides predictability through full reserves in conservative assets and a firm redemption window. The interest ban means tokens cannot pay holders directly, so competition will focus on convenience and speed rather than return. Foreign issuers are also in scope, suggesting the framework aims to set terms for anyone serving US users from abroad.
Treasury Secretary Scott Bessent called the development a watershed moment for American finance, comparing the GENIUS Act’s impact on stablecoins to the National Currency Act of 1863.
The compliance picture remains incomplete until Treasury publishes separate AML and sanctions rules. Meanwhile, OMB approval of information collections is the practical trigger for applications.
