The U.S. Office of the Comptroller of the Currency (OCC) has issued final regulations for the GENIUS Act, establishing federal standards for stablecoin issuers. The rules take effect on January 18, 2027, and cover reserves, redemptions, custody, and risk management.
OCC Establishes Federal Rules for Stablecoin Issuers
The final rule sets conditions for U.S. payment stablecoin issuers and qualifying foreign companies under OCC supervision. It also provides guidelines for certain cryptocurrency custody services offered by federally regulated institutions.
Issuers must meet requirements for reserve backing, customer redemption, operational risk management, and regulatory reporting. The OCC will supervise qualifying companies and review their adherence to the new framework.
Comptroller Jonathan Gould said the rules set standards for reserve backing, redemption, and risk management, and are part of the administration’s efforts to regulate digital asset services.
The announcement follows recent recommendations from the Blockchain Association on the GENIUS Act, which called for better definitions of digital asset service providers, protections for decentralized finance infrastructure, and clarification of requirements for foreign stablecoin issuers.
Final GENIUS Act Rule Addresses Stablecoin Rewards
The OCC prohibits stablecoin issuers from directly paying interest or yield to stablecoin holders. However, the final framework removed the proposed automatic presumption against certain third-party rewards arrangements.
Regulators will instead review these arrangements on a case-by-case basis to determine whether they breach restrictions on interest payments by issuers. The change does not apply to all stablecoin rewards programs.
This distinction is important for platforms that pay rewards for holding their stablecoins, such as regulated exchanges. Such arrangements remain subject to applicable federal requirements and supervisory review.
The ruling comes as financial institutions seek more clarity on cryptocurrency banking. Previously, community banking groups challenged OCC crypto charter approvals, raising questions about regulatory oversight.
During the comment period, the OCC received hundreds of comments from banking associations, cryptocurrency firms, and academics.
Stablecoin Regulations Take Effect January 18, 2027
The GENIUS Act and the OCC’s implementing regulations become effective on January 18, 2027. Certain compliance requirements remain subject to separate rulemaking processes.
The OCC confirmed that anti-money laundering, Bank Secrecy Act, and sanctions-related requirements will receive separate regulations coordinated with the Treasury Department.
The regulator will also coordinate with other federal agencies responsible for implementing the legislation. Further announcements will address applications and waiver requests from prospective stablecoin issuers.
Meanwhile, the OCC has issued guidance covering applications, registration procedures, and related supervisory requirements for eligible companies. The agency will continue monitoring the stablecoin industry and may adjust its supervisory framework as the market develops.
