The Office of the Comptroller of the Currency (OCC) has finalized regulations for payment stablecoin issuers under the GENIUS Act. The new framework mandates specific standards for asset reserves, token redemption processes, risk management, auditing procedures, and asset custody for entities under OCC supervision.
These rules apply to national bank subsidiaries, federal savings associations, select non-bank entities, and certain foreign issuers. The regulator has established oversight protocols and defined conditions under which an issuer's authorization to release stablecoins may be revoked.
The GENIUS Act prohibits issuers from offering rewards tied solely to the holding or usage of stablecoins. While the OCC will evaluate existing reward programs on a case-by-case basis, it suggests that incentives tied to broader activities may remain permissible.
The document excludes provisions related to anti-money laundering and sanctions compliance under the Bank Secrecy Act, which the OCC and the U.S. Treasury plan to address separately. The regulator will announce the timeline for accepting applications from potential issuers at a later date.
