U.S. Adopts Stablecoin Rules to Take Effect on January 18, 2027

Key Facts

The U.S. Office of the Comptroller of the Currency issued a final rule regulating payment stablecoins, set to take effect alongside the GENIUS Act on January 18, 2027, according to an OCC statement. The rule sets standards for reserves, redemption and risk management for entities and activities under its jurisdiction. Its scope includes nonbank entities seeking a federal license to issue payment stablecoins, alongside relevant banking entities. It also covers foreign payment stablecoin issuers, according to the OCC's regulatory bulletin on the rule. Its provisions extend to audits, reporting, supervision, custody and capital requirements within the framework governing issuance.

The GENIUS Act requires reserves backing outstanding stablecoins at a ratio of at least 1 to 1, according to the White House Council of Economic Advisers. Assets permitted for these reserves include U.S. Treasury bills with remaining maturities of no more than 93 days. U.S. Treasury Secretary Scott Bessent links stablecoin expansion to supporting the dollar's position in the global financial system, according to a Treasury statement. He said the expansion would support the dollar's status as the world's reserve currency, a position he is counting on the spread of these currencies to strengthen. Bessent also sees growing use of stablecoins increasing demand for the Treasury securities backing them.

Bessent described the law as a "watershed moment in American finance" in remarks published by the OCC. He compared the payment stablecoin framework to the National Currency Act of 1863, enacted under President Abraham Lincoln. The Treasury secretary made the historical comparison while praising the legislation regulating payment stablecoins in the United States. The GENIUS Act was enacted on July 18, 2025, according to the OCC's regulatory bulletin. The final rule followed a regulatory proposal published by the OCC on February 25, 2026, as part of the process of implementing the law.

On yields, stablecoin issuers, including Circle, remain barred from paying interest to holders of their coins, according to the Associated Press. Stablecoin trading platforms, meanwhile, can pass profits to their customers in the form of interest-like rewards. These reward arrangements are assessed on a case-by-case basis, according to the agency's coverage of the decision. The American Bankers Association objected to the decision, citing what it sees as risks to the funds banks use to make loans. The association said those funds finance "loans that power the U.S. economy," expressing the banking sector's opposition to the reward arrangements.

Alongside the OCC rules, the Federal Reserve put forward proposals for stablecoin issuers under its supervision, according to a statement from the Board. Its proposals address full backing of stablecoins with liquid, permitted reserve assets as part of the proposed requirements for the entities concerned. They also include capital and risk management requirements for these issuers, according to the Federal Reserve statement. The OCC said Bank Secrecy Act and anti-money laundering requirements would be addressed in a separate rulemaking coordinated with the Treasury Department. That rulemaking will also cover sanctions requirements administered by the Office of Foreign Assets Control, according to the OCC statement on the final rule.

On implementation, the OCC's opening of license applications depends on final Office of Management and Budget approval of the information collection associated with the application forms. Eligible applicants may be granted an exemption from the requirements for a period of no more than 12 months beginning on January 18, 2027, according to the OCC bulletin. Weekly reporting forms are targeted for implementation starting with the January 25, 2027, reporting date, subject to Office of Management and Budget approval. Quarterly reporting forms, subject to the same approval, are targeted for implementation starting with the March 31, 2027, reporting date. In the Federal Reserve process, the comment period on its proposals closes 60 days after publication in the Federal Register.