OCC Finalizes GENIUS Act Stablecoin Rules

The Office of the Comptroller of the Currency finalized rules for payment stablecoin issuers and related custody activities, establishing the agency’s framework under the GENIUS Act ahead of its January 18, 2027, effective date. The rules cover issuers and firms within the OCC’s jurisdiction, including subsidiaries of national banks and federal savings associations, federally qualified nonbank issuers, and some state-qualified issuers. They set requirements for reserves, redemptions, risk management, custody, reporting and issuer applications. The OCC said the framework will take effect on January 18, 2027, the same date the law takes effect. Under the final rule, issuers must maintain reserves at least equal to the stablecoins outstanding and generally process redemption requests within two business days. It also requires at least $5 million in capital and an operational backstop covering 12 months of expenses, according to the rule’s detailed provisions. The rule retains the GENIUS Act’s ban on issuers paying holders interest or yield solely for holding, using or retaining payment stablecoins. But the OCC removed a proposed presumption that certain rewards paid through...