- The OCC finalized rules for payment stablecoin reserves redemptions and some custody activities under the GENIUS Act.
- Issuers must hold reserves at least equal to outstanding stablecoins and generally process redemptions within two business days.
The new OCC stablecoin rules set out how payment stablecoin issuance and certain custody activities will be handled for entities under the agency’s jurisdiction. Finalized on Wednesday by the US Office of the Comptroller of the Currency, the rule implements the GENIUS Act framework and sets a start date of Jan. 18, 2027. The OCC stablecoin rules cover reserve backing, redemptions and related custody activities, while also defining which regulated firms fall under the framework. The agency said the package is meant to provide a practical structure for payment stablecoin activity, while keeping standards in place for reserve backing, redemption and risk management.
OCC stablecoin rules for issuers
The final rule says issuers must keep reserves worth at least as much as their outstanding stablecoins. It also says redemption requests generally need to be processed within two business days. These points form the core operational standards in the OCC stablecoin rules for payment stablecoin issuers covered by the agency.
According to the agency’s announcement, the rule applies to national banks, federal savings associations and federal branches and their subsidiaries. It also applies to nonbank firms that seek or receive federal qualified issuer status. In addition, state-qualified issuers are included when the OCC has regulatory or enforcement authority over them.
Custody activities and effective date
The OCC said the final rule covers some custody activities related to payment stablecoins alongside issuance requirements. The rule and the GENIUS Act framework are both scheduled to take effect on Jan. 18, 2027, giving the market a defined date for the new standards to begin.
Comptroller of the Currency Jonathan Gould said the agency is providing a clear and practical framework for payment stablecoin innovation. He said the standards focus on reserve backing, redemption and risk management, reflecting the main structure of the final rule.
Yield ban under OCC stablecoin rules
The OCC removed a proposed presumption that certain arrangements involving affiliates or related third parties would violate the law’s yield ban. That proposed approach did not remain in the final version, marking one of the notable changes in the completed rule.
At the same time, the final rule keeps the ban on issuers paying holders interest or yield solely for holding, using or retaining their stablecoins. The agency also said it still has authority to act against attempts to evade that prohibition, preserving its enforcement position around the yield restriction.
What the OCC will address separately
The OCC said it will announce separately when it begins processing issuer applications and waiver requests. That means the finalized framework is in place, but the timeline for handling those specific submissions will be communicated later by the agency.
The agency also said that it and the Treasury will address Bank Secrecy Act, anti-money-laundering and sanctions requirements in separate rulemaking. Those topics were not finalized in this rule and will be handled through a different regulatory process.
Conclusion
The OCC stablecoin rules finalize a federal framework for payment stablecoin issuance and some related custody activities under the GENIUS Act. The rule requires reserves at least equal to outstanding stablecoins and says redemption requests should generally be processed within two business days. It applies across a defined set of banks, savings associations, federal branches, subsidiaries and some nonbank or state-qualified issuers where the OCC has authority. The agency also kept the ban on interest or yield for holders while dropping a proposed presumption tied to affiliate arrangements. With an effective date of Jan. 18, 2027, the OCC stablecoin rules now set the baseline standards the agency plans to enforce.
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