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OCC finalizes stablecoin rules under GENIUS Act

OCC finalizes stablecoin rules under GENIUS Act

Rule Changes

Federal framework for dollar-backed payment tokens takes effect January 18, 2027

Today: OCC issues final GENIUS Act rule

Overview

Updated 46 minutes ago

The Office of the Comptroller of the Currency (OCC) issued its final rule implementing the GENIUS Act on October 21, creating the first federal licensing framework for payment stablecoins. The rule takes effect January 18, 2027, alongside the law itself.

The rule covers reserve backing, redemption, and risk management for stablecoin issuers under OCC jurisdiction, including bank subsidiaries, federal issuers, and state-qualified issuers that opt in. Standards for foreign issuers are included. Rules on anti-money laundering and sanctions compliance remain pending in a separate Treasury rulemaking.

Why it matters

The federal government now has a licensing regime for stablecoin issuers, determining which companies can legally issue dollar-backed tokens in the United States.

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Key Indicators

700+
Pages in final rule
The OCC's final rule spans more than 700 pages, per Law360.
12
Months of waiver available to existing issuers
Issuers with substantially complete pending applications can request a waiver of GENIUS Act requirements for up to 12 months from the January 18, 2027 effective date.
2
Rulemakings under GENIUS Act so far
The OCC's final rule and Treasury's August 2026 proposed rule on offer and sale cover separate parts of the act.

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People Involved

Jonathan V. Gould
Jonathan V. Gould
Comptroller of the Currency
Leads OCC's GENIUS Act rulemaking

Organizations Involved

Office of the Comptroller of the Currency
Office of the Comptroller of the Currency
Federal Agency
Issued final rule implementing GENIUS Act

The OCC charters and supervises national banks and federal savings associations.
U.S. Department of the Treasury
U.S. Department of the Treasury
Federal agency
Coordinating with OCC on AML/OFAC rulemaking

The Treasury Department manages federal finances and coordinates financial regulation, including anti-money laundering policy.

Timeline

July 2025 January 2027

5 events Latest: Today
Tap a bar to jump to that date

  1. Final rule and GENIUS Act take effect

    Upcoming Regulatory

    The prior approval requirement begins: issuing a payment stablecoin without permitted issuer status becomes a criminal offense.

  2. OCC issues final GENIUS Act rule

    Today Rulemaking

    The final rule sets standards for reserve assets, redemption, risk management, custody, and capital for permitted and foreign payment stablecoin issuers.

  3. Treasury proposes its GENIUS Act regulations

    Rulemaking

    Treasury issues proposed rules under GENIUS Act section 3 on the offer and sale of payment stablecoins.

  4. OCC publishes proposed GENIUS Act rulemaking

    Rulemaking

    The proposed rule appears in the Federal Register on March 2, 2026, opening a comment period.

  5. President Trump signs the GENIUS Act into law

    Legislation

    The act establishes a federal framework for payment stablecoin issuance, generally requiring issuers to be licensed as permitted payment stablecoin issuers.

Scenarios

1

Stablecoin issuers clear OCC approval, federal regime takes hold

Likely Resolves by Jan 18, 2028

Discussed by: OCC and industry observers

The OCC begins accepting applications once the Office of Management and Budget approves the related information collection. Major stablecoin issuers with substantially complete applications receive waivers to keep operating while review proceeds. First approvals establish the operating baseline for the federal regime.

2

Treasury's AML rulemaking trails, compliance gaps remain

Possible Resolves by End of 2027

Discussed by: OCC and Treasury announcements

Treasury must issue final rules covering Bank Secrecy Act, anti-money laundering, and OFAC sanctions compliance for stablecoin issuers, coordinated with the OCC. Until that rulemaking is complete, issuers face uncertainty about the compliance obligations attached to the new federal licenses.

3

Application backlog stalls stablecoin market transition

Possible Resolves by Jul 31, 2027

Discussed by: Bloomberg Law

Existing issuers file by January 18, 2027, but OCC review moves slowly. The 12-month waiver window keeps them operating on a provisional basis, but prolonged uncertainty discourages new entrants and could push some activity toward foreign issuers that meet the act's standards.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

1863

National Banking Act (1863)

Congress created a federal system for chartering national banks, giving banks the choice of answering to federal or state authority. The law also created the position that became the Comptroller of the Currency to supervise national charters.

Then

National banks proliferated, though state banks remained dominant for years.

Now

The dual banking system became a durable feature of U.S. finance and set the template for optional federal charters.

Why this matters now

The GENIUS Act creates a similar federal alternative to state stablecoin regimes, letting issuers choose their regulator.

2014

SEC Money Market Fund Reforms (2014)

After money market funds broke the buck during the 2008 financial crisis, the Securities and Exchange Commission required institutional prime funds to float their net asset values and allowed funds to impose redemption fees and liquidity gates. The goal was to make cash-like investment products safer.

Then

Funds restructured ahead of the October 2016 compliance date.

Now

The reforms reshaped how cash-like products manage redemption risk and became a reference point for regulating stable-value instruments.

Why this matters now

Stablecoins face the same class of risk regulators addressed for money market funds: instruments that promise stable value while holding a pool of reserve assets.

Sources

(9)
+4
Office of the Comptroller of the Currency Bloomberg Law Law360 The Block Federal Register Office of the Comptroller of the Currency Office of the Comptroller of the Currency Office of the Comptroller of the Currency Office of the Comptroller of the Currency