The Office of the Comptroller of the Currency issued its final rule to implement the GENIUS Act on Wednesday, October 21, 2026, providing long-awaited guidance for banks holding or issuing stablecoins, with the rule set to take effect on January 18, 2027. The bottom line: the new rule bans direct yield payments to customers from stablecoin issuers but allows third-party arrangements evaluated case-by-case, a move that will likely ease concerns among trade groups and investors.
Background And History
The GENIUS Act, or Guiding and Establishing National Innovation for U.S. Stablecoins Act, aims to establish a federal framework for payment stablecoins in the digital age. According to Secretary of the Treasury Scott Bessent, the GENIUS Act “marks a watershed moment in American finance, further cementing the United States as the crypto capital of the world.” The OCC’s final rule carries this landmark legislation forward, providing a clear, practical foundation for private-sector innovation, competition, and American leadership in digital assets. By the numbers, the OCC received hundreds of comments from crypto companies, community bankers, and academics during the rulemaking process, highlighting the complexity and importance of this issue.
Key Provisions And Implications
The final rule establishes requirements for permitted payment stablecoin issuers and foreign payment stablecoin issuers under the OCC’s jurisdiction, as well as certain custody activities conducted by OCC-supervised entities. The rule bans direct yield payments to customers from stablecoin issuers, but allows third-party arrangements evaluated case-by-case. As the OCC noted, “depending on the facts and circumstances, a payment to payment stablecoin holders through an intermediary might be made solely in connection with the holding, use, or retention of a payment stablecoin or might be made, at least in part, for other reasons.” Investors will note that transaction-based payments that do not amount to interest or yield or are not made solely in connection with the holding, use, or retention of a payment stablecoin would not be prohibited under the new framework.
Regulatory Framework And Next Steps
The rule does not address parameters related to the Bank Secrecy Act, anti-money laundering, and Office of Foreign Assets Control sanctions, which will be handled separately by the Treasury Department. The OCC will later announce when it will begin accepting and processing applications and waiver requests from prospective permitted payment stablecoin issuers. Existing payment stablecoin issuers operating in the United States generally must receive waivers from the Prior Approval Requirement within 12 months, with the OCC expecting to grant requests for waivers unless its review identifies compelling reasons to deny the request. The figure that matters is January 18, 2027, when the rule takes effect and issuing a payment stablecoin without being a permitted payment stablecoin issuer will carry criminal penalties.
Industry Reaction And Outlook
The Bank Policy Institute urged Treasury and other agencies to coordinate across all rulemakings under the GENIUS Act, arguing that regulations should preserve the benefits of payment stablecoins for their intended use in payments and settlements without causing undue and unnecessary risks. The Blockchain Association asked Treasury to narrow the GENIUS Act rule on who can sell stablecoins and ensure that the provision does not accelerate the July 18, 2028, compliance date Congress gave DASPs. As the industry continues to evolve, the OCC will closely monitor its development and adjust the supervisory and regulatory framework for payment stablecoin issuers as necessary, supporting private-sector innovation and competition in the digital assets space.
Sources
- OCC issues final rule on stablecoin framework
- OCC Issues Final Rule to Implement GENIUS Act – Markets Media
- OCC Issues Final GENIUS Act Rule, Tightens Stablecoin Rewards Oversight for Exchanges: how 8 outlets framed it | NewsCord
Photo: Tran Mau Tri Tam ✪ / Unsplash (Unsplash License)
