On 21 October 2026, the Office of the Comptroller of the Currency (OCC) finalised the rule that implements the GENIUS Act, the first US federal law for payment stablecoins. The rule sets the standards for reserves, redemption, capital, audits and supervision that issuers under OCC oversight must meet from 18 January 2027. The OCC confirmed the rule and its timing in its bulletin on the new reporting forms for stablecoin issuers.
Key takeaways
The OCC finalised the rule on 21 October 2026. It takes effect on 18 January 2027, the same day as the GENIUS Act.
The rule covers permitted payment stablecoin issuers, foreign issuers and certain custody activities under OCC jurisdiction.
It sets requirements for reserves, redemption, capital, audits, reporting and supervision.
Issuers cannot pay interest or yield directly to holders. The OCC dropped its proposed presumption against rewards paid through affiliates and third parties, but it gives existing rewards programmes no safe harbour.
Money laundering and sanctions requirements sit in a separate rulemaking with the US Treasury Department.
What is the GENIUS Act?
GENIUS stands for Guiding and Establishing National Innovation for US Stablecoins. Congress passed the Act and the President signed it on 18 July 2025. It sets federal requirements for payment stablecoins, which are digital tokens designed to hold a steady value, such as one US dollar. The requirements include reserve backing, customer redemption and money laundering compliance. The Act takes effect on the earlier of 18 January 2027 or 120 days after the primary regulators issue final rules, as law firm analysis of the OCC proposal explains.
What did the OCC finalise?
The OCC proposed the rule on 25 February 2026 and invited public comment on the proposal. The final rule places most requirements in a new Part 15 of Title 12 of the Code of Federal Regulations. Part 15 covers permitted activities, reserve assets, redemption, risk management, audits, reports and supervision. The OCC also amended its existing rules on capital adequacy, prompt corrective action and fees, as reporting on the final text describes.
The rule applies to several groups:
National banks, federal savings associations and federal branches, along with their subsidiaries.
Nonbank firms that want to become federal qualified issuers.
Foreign issuers under OCC jurisdiction.
State qualified issuers that move into the federal framework, through a transition path.
What does the rule require of reserves and redemption?
The GENIUS Act requires full 1:1 reserve backing, which means an issuer holds one dollar of permitted reserve assets for each dollar of stablecoin in circulation. Permitted assets include cash and short term US Treasury securities. Holders can redeem at par. The OCC proposal set the standard redemption window at two business days under normal conditions and required monthly public disclosure of reserve composition, confirmed by an independent registered public accounting firm.
The final rule changes how issuers build their reserves. The OCC moved to a principles based approach on diversification and concentration. Issuers must hold minimum daily liquidity and face limits on concentration with any single counterparty. That gives issuers some flexibility in reserve design while keeping a liquidity floor in place.
What happens to stablecoin rewards?
The statute bars issuers from paying holders interest or yield. It is silent on whether affiliates or third parties may offer rewards, which left the industry and banks on opposite sides of the question, as legal analysis of the yield debate sets out.
The OCC proposal would have presumed that yield paid through an affiliate or related third party breaches the ban. The final rule drops that presumption. It also declines to presume that rewards programmes which predate the GENIUS Act comply. The OCC will review each arrangement on its facts. The agency chose not to wait for Congress to pass separate market structure legislation that could change the yield language.
For platforms that pay rewards on stablecoin balances, the result is a case by case review rather than a clear yes or no. That is one of the main considerations to watch before January.
Key dates
Date | Milestone |
18 July 2025 | The GENIUS Act becomes law. |
25 February 2026 | The OCC proposes its implementing rule and opens a 60 day comment period. |
21 October 2026 | The OCC issues the final rule and revised reporting forms. |
18 January 2027 | The GENIUS Act and the final rule take effect. |
25 January 2027 | First weekly report date for issuers, subject to approval by the Office of Management and Budget. |
31 March 2027 | First quarterly report date for issuers, subject to the same approval. |
What the rule leaves open
Bank Secrecy Act, money laundering and sanctions requirements. The OCC will address these in a separate rulemaking with the US Treasury Department.
The start date for issuer applications and waiver requests. The OCC will announce it separately.
Rules from other agencies. An issuer’s primary regulator depends on its charter and deposit insurance status, so issuers track more than one rulemaking.
Frequently asked questions
What is the GENIUS Act?
The GENIUS Act is the first US federal law for payment stablecoins. It requires full reserve backing, customer redemption and money laundering compliance from permitted issuers. President Trump signed it on 18 July 2025.
What did the OCC finalise on 21 October 2026?
The OCC finalised its rule implementing the GENIUS Act for issuers and custody activities under its jurisdiction. The rule covers permitted activities, reserve assets, redemption, risk management, audits, reports and supervision.
When does the OCC’s GENIUS Act rule take effect?
The rule takes effect on 18 January 2027, the same day as the GENIUS Act. The first weekly stablecoin issuer report is due for the 25 January 2027 report date, subject to approval by the Office of Management and Budget.
Who must follow the OCC rule?
National banks, federal savings associations, federal branches and their subsidiaries must follow it. So must nonbank firms seeking federal qualified issuer status and foreign issuers under OCC jurisdiction.
Can stablecoin issuers pay interest or yield under the GENIUS Act?
No. The Act bars issuers from paying holders interest or yield. The OCC will review rewards offered through affiliates or third parties on a case by case basis and gives existing programmes no safe harbour.
