OCC GENIUS Act final rule Sets Standards for Payment Stablecoin Issuers

The Office of the Comptroller of the Currency issued its final rule implementing the GENIUS Act on October 21, 2026. The regulation creates the first comprehensive federal framework for permitted payment stablecoin issuers and takes effect January 18, 2027.

OCC GENIUS Act final rule details on reserves and operations

The rule requires issuers to maintain one-to-one backing with high-quality liquid assets including cash, Federal Reserve balances, short-dated Treasuries, qualifying repurchase agreements and government money market funds. These assets must remain identifiable and segregated at all times. Issuers must redeem tokens at par value within two business days.

Daily redemptions exceeding 10 percent of outstanding supply trigger a 24-hour notification requirement to the OCC. A minimum capital floor of $5 million applies along with liquidity stress testing, counterparty exposure limits and risk management programs. The rule also covers custody activities conducted by national banks and federal savings associations.

Issuers operating without permitted status face criminal penalties. Existing operators may request up to 12 months of transitional relief provided they submit a substantially complete application before the effective date. The OCC will announce the start of application and waiver intake once Office of Management and Budget approval of required forms is complete.

Changes from proposal and regulatory context

Regulators removed the proposed rebuttable presumption on certain affiliate yield arrangements and the automatic 20-day weighted-average maturity limit on reserves. Surplus reserves above the 1:1 requirement may now be withdrawn at any time provided the minimum backing is preserved. These adjustments give issuers greater flexibility while retaining case-by-case review for potential evasion.

The GENIUS Act, enacted July 18, 2025, prohibits issuance or sale of payment stablecoins in the United States without federal or qualifying state authorization. The OCC oversees national bank subsidiaries, nonbank federal qualified issuers, certain state-qualified entities and foreign issuers under its jurisdiction. Separate Bank Secrecy Act and sanctions rules will be developed jointly with Treasury.

Treasury Secretary Scott Bessent described the final rule as a watershed moment that reinforces U.S. leadership in digital assets, comparable to the National Currency Act of 1863. Comptroller Jonathan V. Gould stated that the framework provides clear standards for reserves, redemption and risk management aligned with broader administration goals.

Implementation timeline and industry preparations

Weekly and quarterly reporting forms were also finalized with phased effective dates in January and March 2027, subject to OMB clearance. The OCC will monitor compliance and may issue supervisory guidance as market conditions evolve. Other federal agencies including the Federal Reserve and FDIC continue work on their own GENIUS Act implementing rules.

Industry participants are reviewing capital, custody and redemption procedures ahead of the January 18, 2027 deadline. Coordination among regulators and the publication of application materials remain the next scheduled milestones.