U.S. OCC first to finalize GENIUS Act stablecoin regulation rules, effective January 18, 2027

On October 21, citing The Block, the U.S. Office of the Comptroller of the Currency (OCC) released on Wednesday the final rule implementing the GENIUS Act, becoming the first regulator to complete rulemaking for stablecoin regulation under the Act. The new rule will take effect on January 18, 2027. The rule establishes a regulatory framework for permitted stablecoin issuers, provides a pathway for banks and nonbank institutions to engage in payment stablecoin activities, and clarifies standards for foreign stablecoin issuers and asset custody.

The final rule requires stablecoin issuance regulation to follow standards on reserve backing, redemption, and risk management. Compared with the earlier proposal, the new rule does not include presumptive violation provisions targeting specific business relationships between issuers and third parties, but regulatory officials said the OCC will still evaluate such arrangements on a case-by-case basis and has the authority to take enforcement action against conduct that circumvents the Act's requirements. The issue of stablecoin rewards has previously become a focal point of controversy between the U.S. banking industry and the crypto industry, with banks concerned that such rewards could lead to deposit outflows, while the GENIUS Act does not comprehensively prohibit platforms from offering rewards to users.