U.S. BANKING REGULATOR FINALIZES GENIUS ACT RULES TO ESTABLISH STABLECOIN FRAMEWORK

In brief: 

₿- The OCC’s final rule sets requirements for permitted U.S. and foreign payment stablecoin issuers under its jurisdiction, covering reserve backing, redemption, risk management, and certain digital asset custody activities.

₿- Anti-money laundering, Bank Secrecy Act, and OFAC sanctions requirements will be addressed separately.

The U.S. Office of the Comptroller of the Currency (OCC) has announced a final rule implementing the GENIUS Act, establishing regulatory requirements for payment stablecoin issuers and certain digital asset custody activities. Announced on 21 October 2026, the rule marks a significant step towards creating a federal regulatory framework for stablecoins in the United States.

The regulation aims to provide greater clarity for companies operating in the digital asset sector while strengthening standards for reserve backing, redemption rights, and risk management. Both the final rule and the GENIUS Act are scheduled to take effect on 18 January 2027.

OCC sets rules for payment stablecoin issuers

The final rule establishes requirements for permitted payment stablecoin issuers and foreign payment stablecoin issuers that fall under OCC supervision. It also addresses certain custody activities carried out by institutions overseen by the agency.

The framework is designed to establish consistent regulatory expectations for stablecoin businesses operating within the OCC’s jurisdiction. By setting standards for reserves, redemption, and risk controls, the regulator aims to support responsible innovation while addressing risks associated with payment stablecoins.

U.S. Treasury Secretary Scott Bessent described the GENIUS Act as a major development for American financial markets, comparing its significance to the National Currency Act of 1863, which helped establish a national framework for bank-issued currency.

Comptroller of the Currency Jonathan V. Gould said the final rule advances the administration’s digital asset policy by providing a practical regulatory foundation for stablecoin innovation.

Anti-money laundering rules to follow separately

Although the final rule covers most of the regulatory requirements the OCC must introduce under the GENIUS Act, it does not include provisions concerning the Bank Secrecy Act, anti-money laundering obligations, or sanctions administered by the Office of Foreign Assets Control (OFAC).

Those areas will be addressed through a separate rulemaking process coordinated with the U.S. Treasury Department. This means additional regulatory requirements for stablecoin issuers are still expected as federal agencies continue implementing the legislation.

The OCC said it received hundreds of submissions during the consultation process. Respondents included cryptocurrency companies, community banks, industry associations, academics, and other stakeholders, reflecting the broad range of interests affected by the emerging framework.

Stablecoin applications await further guidance

The OCC has not yet announced when prospective issuers will be able to submit applications for permitted payment stablecoin status or request waivers. The agency said it would provide those details in a separate announcement.

It also plans to coordinate with other federal authorities responsible for implementing different parts of the GENIUS Act and monitor how the stablecoin industry develops. Regulatory adjustments may follow if market structures or risks change.

With implementation scheduled for January 2027, the final rule brings the United States closer to a defined federal framework for payment stablecoins. Its practical impact will depend on how the requirements are applied and how forthcoming rules address outstanding compliance obligations.