The Office of the Comptroller of the Currency (OCC) has finalized regulations for the GENIUS Act, marking the first federal implementation of the stablecoin framework passed by Congress in July 2025. The new rules, which establish standards for reserve backing, capital, custody, and risk management, are set to take effect on January 18, 2027.
The final regulation introduces a shift in how third-party rewards are handled. While the GENIUS Act prohibits issuers from paying interest directly, the OCC has removed a previous proposal that would have presumed certain third-party reward arrangements to be violations. Instead, the agency will conduct case-by-case reviews of such programs.
The agency also relaxed several reserve management requirements. Issuers are no longer restricted by a 20-day weighted-average maturity limit on assets and may withdraw surplus reserves at any time, provided they maintain one-to-one backing. Additionally, the rule removes extended redemption deadlines, requiring notification to the OCC within 24 hours if daily redemptions exceed 10% of the total value.
These standards apply to national banks, their subsidiaries, nonbank companies, and foreign issuers under OCC jurisdiction. The agency has not yet announced a start date for accepting applications from prospective issuers, and separate rules regarding anti-money laundering and sanctions are currently being drafted by the Treasury.
