OCC Finalizes Stablecoin Rules Under GENIUS Act

The Office of the Comptroller of the Currency finalized a comprehensive rule on October 21, 2026, to implement the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. Effective January 18, 2027, the regulation sets standards for reserve assets, redemption, risk management, and custody for national banks, federal savings associations, and qualified nonbank or foreign entities issuing dollar-based payment stablecoins.

A primary point of contention involves the Act's prohibition on issuers providing yield or rewards solely for holding stablecoins. The OCC stated that pre-existing rewards programs will not receive special treatment and must be reviewed case-by-case to ensure compliance.

This regulatory push follows industry efforts to shape the framework. On October 19, the Blockchain Association submitted a comment letter to the U.S. Treasury Department urging a narrower definition of digital asset service providers to protect decentralized finance and proprietary trading. The group also requested that criminal liability for unlawful issuance require actual knowledge rather than ordinary market-making.

While the OCC is the first federal agency to finalize its rules, the Treasury Department, Federal Reserve, and FDIC continue to develop regulations regarding the Bank Secrecy Act and anti-money laundering components. Treasury Secretary Scott Bessent noted that the final rule provides a practical foundation for American leadership in digital assets.