The U.S. Office of the Comptroller of the Currency (OCC) has finalized and officially announced its rules implementing the GENIUS Act, the federal legislation governing payment stablecoins. The announcement marks the first instance among U.S. financial regulators in which detailed enforcement rules for the GENIUS Act have been completed. The rules will apply in full starting January 18, 2027, the same date the law formally takes effect.
The rules cover national banks and federal savings associations in the United States, branches and subsidiaries of foreign banks, nonbank fintech issuers seeking federal authorization, and all overseas stablecoin issuers subject to U.S. jurisdiction. Under the final rules, issuers must maintain reserves consisting of eligible assets—including cash and short-term U.S. Treasuries—equal to at least 100% of the amount in circulation, and guarantee users’ immediate redemption rights at par value on a one-to-one basis. They also mandate limits on concentration with a single counterparty and minimum daily liquidity, while establishing stablecoin custody services, regular external audits, and weekly and quarterly reporting requirements to strengthen prudential oversight.
Issuers are strictly prohibited from providing stablecoin holders with direct interest or yield. However, the final rules removed a provision from the initial proposed legislation that would have created a blanket presumption of violation for indirect compensation programs conducted through affiliates or third parties, such as exchanges and fintech payment companies. Regulators plan to assess each arrangement case by case, based on the facts of the individual transaction, to determine whether it is an indirect interest payment contract intended to maintain or encourage stablecoin holdings or an incentive serving a legitimate business purpose, such as promoting payments.
The U.S. Treasury and financial authorities view the final rules as a significant turning point that can advance digital payment innovation while maintaining financial stability. The stated aim is to use the GENIUS Act to establish payment stablecoins within a legitimate federal framework, thereby pursuing private-sector innovation and monetary stability together, much as President Abraham Lincoln laid the foundation for the national currency through the National Currency Act in 1863. However, detailed provisions on anti-money-laundering (AML) and compliance with Office of Foreign Assets Control (OFAC) sanctions will be announced in stages after separate coordination with the U.S. Treasury.