US bank regulator OCC issues first final rule under GENIUS stablecoin law

The US Office of the Comptroller of the Currency (OCC) announced on Wednesday 21 October a final rule to implement the GENIUS Act, the 2025 law that set up a federal framework for dollar-pegged payment stablecoins.

The rule sets requirements for permitted payment stablecoin issuers and foreign issuers under the OCC’s jurisdiction, and for certain custody activities by OCC-supervised firms, the agency said. Rules on the Bank Secrecy Act, anti-money laundering and sanctions will follow in a separate rulemaking with the Treasury Department. The rule and the GENIUS Act take effect on 18 January 2027, the OCC said, adding that it will announce separately when it starts accepting applications.

Comptroller of the Currency Jonathan Gould said the rule provides “a clear, practical framework” with “strong standards for reserve backing, redemption, and risk management.” Treasury Secretary Scott Bessent called the GENIUS Act “a watershed moment in American finance.”

The law bars issuers from paying yield to holders. CoinDesk reported that the rule does not presume that existing rewards programmes run by exchanges comply, and quoted the agency as saying it “will apply the language of the statute to the facts and circumstances of any particular arrangement.” The agency said a reward that “might be made, at least in part, for other reasons” would fall outside the ban, CoinDesk reported.

CoinDesk reported that the OCC is the first federal banking regulator to finalise a GENIUS Act rule; the Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corporation still have rules in progress.

See also: Public comment closes this week on US Treasury stablecoin rule and SEC crypto offering proposal.