This week's story Rules & policy
US bank regulator OCC issues the first final rule under the GENIUS stablecoin law
What happened. On 21 October the OCC issued its final rule implementing the GENIUS Act, the 2025 US stablecoin law, becoming the first regulator to finalise its rule, The Block reported. It takes effect on 18 January 2027, Decrypt and Cointelegraph reported.
Why it matters. The rule drops a proposed presumption that an issuer's deals with affiliates or third parties break the law's yield ban, Cointelegraph reported. Banks and crypto firms are divided over yield.
- Issuers must still redeem within two business days, Unchained reported.
- Anti-money-laundering and sanctions rules are left to a separate rulemaking with the Treasury, Decrypt and Unchained reported.
- The American Bankers Association said the rule preserves platforms' ability to offer yield; the Blockchain Association called it "more closely in line with the statutory text", The Block reported.
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What happened. On 21 October the Office of the Comptroller of the Currency (OCC) issued its final rule implementing the GENIUS Act, the 2025 US stablecoin law, becoming the first regulator to finalise its rule, The Block reported. The rule sets reserve, redemption, risk-management, custody and capital standards for stablecoin issuers under the OCC, Decrypt reported, and takes effect on 18 January 2027, the same day as the law, Decrypt and Cointelegraph reported. Anti-money-laundering and sanctions rules are left to a separate rulemaking with the Treasury, Decrypt and Unchained reported.
Why it matters. The final rule drops a proposed presumption that deals between an issuer and its affiliates or third parties break the law's ban on paying yield; the OCC said it keeps the power to act against evasion, Unchained and Cointelegraph reported. That question, whether platforms such as Coinbase may pass rewards to stablecoin holders, has divided banks and crypto firms. American Bankers Association CEO Rob Nichols said the rule preserves crypto platforms' ability to offer yield despite "Congress's clear intent to protect local lending", while the Blockchain Association said dropping the presumption brings the rule "more closely in line with the statutory text", The Block reported.
- Issuers must still redeem within two business days; the proposed automatic seven-day extension when requests top 10% of outstanding coins in a day was replaced by an extension the issuer must ask the OCC for, Unchained reported.
- The OCC said it received hundreds of comments on its February proposal, Decrypt reported, and will announce separately when it starts accepting issuer applications and waiver requests.
- Comptroller Jonathan Gould called it "a clear, practical framework for payment stablecoin innovation"; Treasury Secretary Scott Bessent compared the GENIUS Act to the National Currency Act of 1863, Decrypt and Unchained reported.
- An OCC official told reporters third-party arrangements would be judged case by case; TD Cowen called that uncertainty a negative for banks, The Block reported.
Read the originals (7), usually in their own language
- First out the gate: OCC debuts final rule implementing Trump-signed GENIUS Act · The Block
- OCC’s Final Stablecoin Rule Backs Off Yield Test, Scraps Automatic Redemption Extension · Unchained
- OCC Finalizes GENIUS Act Stablecoin Rules Ahead of January Deadline · Decrypt
- OCC finalizes GENIUS Act rules for stablecoin issuers and custody · Cointelegraph
- American Bankers Association accuses OCC of undermining Congress with final stablecoin rewards rule · The Block
- OCC Finalizes GENIUS Act Rule, Drops Third-Party Yield Presumption · The Defiant
- OCC's final rule to start fresh in weighing stablecoin rewards against GENIUS Act ban · CoinDesk