OCC Finalizes GENIUS Act Stablecoin Rules Ahead of January Deadline

In brief

• The OCC finalized its rule implementing the GENIUS Act, setting standards for stablecoin issuers under its jurisdiction before the law takes effect on January 18, 2027.
• The rule covers reserves, redemption, risk management, custody and capital, but leaves anti-money laundering and sanctions rules to a separate rulemaking with Treasury.
• The banking regulator said it will announce separately when it starts accepting applications and waiver requests from prospective stablecoin issuers.

The Office of the Comptroller of the Currency issued its final rule implementing the GENIUS Act on Wednesday, setting out the requirements that stablecoin issuers under its oversight will have to meet when the law takes effect on January 18, 2027, the banking regulator announced.

The rule applies to payment stablecoin issuers that fall under the OCC's jurisdiction, including subsidiaries of national banks and federal savings associations, nonbank issuers approved at the federal level and some state-qualified issuers, as well as foreign issuers and certain custody activities at OCC-supervised firms, according to an OCC bulletin.

Most of the requirements sit in a new section of the OCC's regulations covering reserve assets, redemption, risk management, audits and reporting, custody, applications, the supervision of foreign issuers, and a capital and operational backstop. The rule also covers how state-qualified issuers transition to the federal framework, and when the OCC can revoke an issuer's approval.