Key Notes
- The OCC’s core GENIUS Act stablecoin rule takes effect January 18, 2027.
- A proposed presumption against certain rewards arrangements was removed, while the yield ban remains.
- Issuer applications await a separate opening announcement and AML rules remain separate.
The Office of the Comptroller of the Currency has finalized its core GENIUS Act stablecoin regulations, setting standards for issuers under its jurisdiction while stepping back from a proposed presumption against certain third-party rewards arrangements.
The US banking regulator’s announcement sets January 18, 2027 as the effective date. The package covers reserves, redemptions, capital, custody and supervision. Anti-money-laundering and sanctions provisions remain part of a separate rulemaking, and the OCC has not yet opened applications under the framework.
The decision implements the law signed in July 2025. It finalizes the OCC’s main prudential requirements, rather than completing every agency’s work on US stablecoin regulation or granting existing issuers automatic approval.
Rewards Debate Stays Open
One of the most consequential changes concerns how the OCC will enforce the GENIUS Act’s prohibition on issuers paying interest or yield solely for holding, using or retaining their payment stablecoins.
The proposal would have presumed that certain arrangements involving issuers, affiliates and related third parties violated that prohibition unless the issuer demonstrated otherwise. The final rule removes that presumption.
Crypto in America reported that the change leaves a major dispute between banks and crypto firms unresolved: how far restrictions should extend to rewards offered through exchanges and other intermediaries.
The OCC’s final text retains the underlying yield prohibition and rejects a general safe harbor. The agency says it will examine arrangements through applications and ongoing supervision, act against violations or attempts to evade the law, and provide further guidance where appropriate.
Removing the presumption therefore does not establish that every exchange rewards program is lawful. Whether a particular payment is prohibited will depend on its purpose, funding and surrounding facts, rather than simply the label attached to it.
More Flexibility over Reserves, with Backing Requirements Intact
Issuers must keep identifiable reserves separate from their other assets, with reserve value at least equal to outstanding stablecoin issuance at all times. They must also be able to access those assets to meet redemptions under both normal and stressed conditions.
The final rule allows withdrawals of excess reserves after appropriate checks confirm that full backing will remain in place. The proposal would have tied surplus withdrawals to a monthly reporting cycle. Eligible reserve investments remain restricted; for example, qualifying Treasury bills, notes and bonds must have no more than 93 days remaining to maturity.
The redemption provisions also changed. The OCC removed a proposed automatic extension during a surge in withdrawals. Instead, an issuer receiving redemption requests exceeding 10% of the outstanding value of any stablecoin brand within 24 hours must notify the agency within 24 hours and may request an extension.
The normal redemption limit is two business days, subject to the rule’s onboarding and legal conditions. Redemption means the issuer has processed and initiated the outgoing transfer, or credited the customer’s account when requested; it is not a guarantee that every external bank transfer will arrive within that period.
Applications and Transition Arrangements Come Next
The OCC will announce separately when it starts accepting applications and waiver requests, after Office of Management and Budget approval of the associated information collection.
In a companion bulletin, the agency outlined possible temporary waivers for existing issuers with substantially complete applications pending by January 18. Such relief requires a written request and an OCC decision, can last no more than 12 months from that date, and generally does not waive other requirements such as reserve backing.
These implementation steps matter for financial institutions preparing stablecoin businesses. CoinScreamer previously covered Wells Fargo’s preparations and a bank-backed issuance venture targeting 2027. The final rule gives prospective issuers more detail for those plans, while authorization and operational readiness remain separate milestones.
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