OCC Finalizes GENIUS Act Rules for US Stablecoin Issuers

The US Office of the Comptroller of the Currency (OCC) has finalized rules implementing the GENIUS Act, setting requirements for payment stablecoin issuers under its supervision ahead of the law taking effect on January 18, 2027.

The rules cover reserve assets, redemptions, risk management, capital requirements, audits and reporting. They apply to qualifying issuers under OCC jurisdiction, including certain bank subsidiaries, federally approved nonbank issuers and foreign stablecoin issuers, as well as some custody activities conducted by OCC-supervised institutions.

One point likely to draw attention from crypto platforms is how the rules treat stablecoin rewards. Issuers remain prohibited from paying interest or yield directly to holders under the GENIUS Act, but the OCC will assess arrangements in which exchanges or other third parties provide rewards on a case-by-case basis. The agency removed a proposed presumption that certain arrangements involving issuers and related third parties would violate the yield ban.

Banking groups have criticized the decision, arguing that stablecoin rewards could encourage customers to move deposits away from traditional banks and reduce their capacity to lend. Crypto companies, meanwhile, have sought clearer and more consistent rules across federal regulators.

The final rule does not cover Bank Secrecy Act requirements, anti-money laundering obligations, or sanctions compliance. The OCC said it will address those issues in a separate rulemaking coordinated with the US Treasury Department. It has not yet announced when it will begin accepting applications from prospective stablecoin issuers.