US Rule Requires 5% Daily Liquidity and Stablecoin Redemption Within Two Business Days

Key Facts

The US Office of the Comptroller of the Currency announced a final rule on October 21, 2026, to implement the GENIUS Act, setting federal requirements for permitted stablecoin issuers and foreign issuers subject to its jurisdiction, along with certain custody activities at institutions it supervises. The rule and the law take effect on January 18, 2027, according to the office’s announcement. The rule sets obligations covering reserve backing for issued stablecoins, available liquidity, redemption speed and disclosure of asset composition. Comptroller of the Currency Jonathan Gould said the office was providing “a clear and practical framework for stablecoin innovation.” He added that the standards cover reserve backing, redemption and risk management.

The text requires permitted issuers to ensure at all times that the value of reserve assets equals or exceeds the value of outstanding stablecoins, and to segregate reserve assets from other assets. It also requires them to hold at least 5% of reserves in deposits or funds available on demand, or in an account at the Federal Reserve. The final rule lowered this threshold from 10% in the proposal to 5%, according to the Federal Register. This sets a minimum level of assets that can be accessed to meet daily liquidity needs, alongside the requirement to cover outstanding issuance. With this change, the adopted rule differed from the level proposed during consultations.

For redemptions, the period may not exceed two business days from the date a request is submitted under normal circumstances, according to the final text published in the Federal Register. The regulation requires issuers to publish a monthly report on reserve composition, with the report’s data examined by a registered public accountant. The chief executive and chief financial officer, or those performing their duties, must also submit a monthly certification to the Office of the Comptroller of the Currency confirming the report’s accuracy. These requirements add a regular disclosure and oversight cycle to the obligations on reserves and liquidity. The office received about 328 comments on the proposal from crypto companies, trade groups, banks and nonprofits.

Among the main points affecting customers is that stablecoin issuers remain barred from paying interest to holders simply for holding the currency, while trading and custody platforms can pass some yields on to customers as rewards. The Associated Press reported that the office will consider these rewards on a case-by-case basis. The final rule did not include the proposal’s presumption that some issuer arrangements with third parties could be illegal. The AP reported that the yield on Coinbase USDC balances reaches 3.5%, compared with an average of 0.38% for traditional savings accounts, according to the latest Federal Deposit Insurance Corporation figures it cited. The American Bankers Association objected to allowing these rewards, saying they threaten “the money banks use to make the loans that power the American economy.”

The GENIUS Act was signed into law on July 18, 2025, and the Office of the Comptroller of the Currency issued the proposed rule on February 25, 2026, setting a 60-day comment period from its publication in the Federal Register. Gould said at the time that the office welcomed feedback to develop a rule that was “effective, practical and reflective of broad industry views.” The final rule excludes Bank Secrecy Act, anti-money laundering and Office of Foreign Assets Control sanctions provisions, which will be addressed in a separate rulemaking process in coordination with the Treasury Department. The office said it would announce in a separate statement when it would begin accepting and processing licensing and exemption applications from entities seeking to become permitted issuers. It said in its guidance that it had not yet begun accepting applications, and that this depended on the Office of Management and Budget approving the forms. The office also expects to update regulations or issue additional guidance as needed as issuer practices evolve and it gains supervisory experience.