OCC sets stablecoin issuer rules under GENIUS Act

With the GENIUS Act setting a federal framework for payment stablecoins, the Office of the Comptroller of the Currency (OCC) finalized rules on October 21 for issuers and related activities under its authority, according to the agency’s final rule bulletin. The rule takes effect January 18, 2027, the same date as the Act.

The rule turns the Act’s requirements into supervisory standards that will govern how covered issuers manage reserves, redemptions, capital and custody.

Which issuers and activities fall under the rule?

The rule applies to national banks and their subsidiaries, federal savings associations and subsidiaries, federal branches, foreign payment stablecoin issuers, and nonbank entities seeking or holding federal qualified payment stablecoin issuer status. It also covers state qualified payment stablecoin issuers when the OCC has regulatory or enforcement authority over them under the Act. Certain custody activities by OCC-supervised entities are included.

Most of the requirements sit in a new 12 CFR Part 15. The OCC also amended regulations covering capital adequacy, prompt corrective action, agency fees and rules of practice and procedure, the bulletin says. The framework includes issuer applications and registrations, supervision of foreign issuers, and provisions for state-qualified issuers moving to federal oversight.

What standards will issuers have to meet?

The OCC’s announcement of the final rule identifies reserve backing, redemption and risk management as central requirements. In the rule, the agency says it revised reserve management provisions after considering public comments, allowing issuers more flexibility while retaining liquidity, diversification and concentration requirements intended to support timely redemptions.

The final framework also clarifies permitted issuer activities, redemption obligations and risk management standards. The OCC says its risk requirements scale with the nature, scope and risk of an issuer’s activities. It sets out requirements for audits, reporting and supervision, alongside capital and operational backstops that are more detailed than the proposal and have simplified capital elements.

The OCC received approximately 328 comments on its proposal, including submissions from crypto companies, banks, trade groups, academics and individuals, according to the rule. The final text addresses those comments and makes changes in areas including reserves, licensing and custody.

What remains outside this rule?

Bank Secrecy Act, anti-money-laundering and sanctions requirements are excluded from this final rule. The OCC says it will address them in a separate rulemaking coordinated with the Treasury Department. The agency also said it will announce separately when it begins accepting and processing applications and waiver requests from prospective permitted payment stablecoin issuers.

Sources

• final rule bulletin — occ.gov
• announcement of the final rule — occ.gov