Office of the Comptroller of the Currency Approves Stablecoin Rules Ahead of January 2027 Effective Date

Key Facts

The Office of the Comptroller of the Currency (OCC) announced a final rule on October 21, 2026, to implement the GENIUS Act, establishing a federal framework for payment stablecoin issuers under its jurisdiction. The rule covers permitted entities and foreign issuers within the OCC’s remit, as well as certain custody activities conducted by institutions it supervises. The Act and rule take effect on January 18, 2027, turning the law’s provisions into operating and oversight requirements for issuers. Treasury Secretary Scott Bessent said the law “represents a watershed moment in American finance.” The rule follows the law’s enactment on July 18, 2025, and sets out federal regulatory details for this type of asset.

The rule addresses reserve assets, redemption mechanisms and risk management, as well as audits, reporting, supervision and custody. It also covers application procedures and capital requirements, in addition to examinations of foreign entities. It therefore extends across multiple operational and oversight aspects of issuers under the OCC’s jurisdiction. The OCC said the reserve arrangements give issuers greater flexibility while retaining liquidity, diversification and asset-concentration requirements. These requirements specify how reserves should be managed while preserving the core safeguards set out in the rule.

The OCC proposed the rule on March 2, 2026, and then received about 328 comments from crypto companies, community bankers, trade groups, academics and others. The agency said it took this input into account in preparing the final text. Key points of contention included the limits on yield paid directly by an issuer to coin holders, with commenters opposing the proposal’s approach on this issue. The final rule clarifies restrictions on yield paid by the issuer, while The Associated Press reported that platforms may pass interest-like returns on to customers on a case-by-case basis. This distinction leaves room to assess platform arrangements individually, while the ban on direct yield payments by issuers remains in place.

The Associated Press reported that Coinbase offered a yield of up to 3.5% on USDC stablecoin balances, compared with an average 0.38% yield on traditional savings accounts, according to the latest Federal Deposit Insurance Corporation figures cited by the report on October 21, 2026. The gap puts the yield model at the center of debate over how revenue tied to stablecoins is distributed. The rule, however, distinguishes between payments made directly by the issuer and rewards that a platform may offer; the latter are assessed case by case. This issue helps explain some participants’ objections to the proposal, particularly the scope of the ban when third parties are involved in making payments. The final framework remains focused on regulating issuance and related activities within the OCC’s jurisdiction.

Under the GENIUS Act, according to the OCC’s guidance, issuing a payment stablecoin in the United States is generally limited to a permitted issuer. The OCC warns that issuance without this status may carry criminal penalties, subject to the law’s provisions and any applicable exemption. Requirements under the Bank Secrecy Act, anti-money laundering rules and sanctions administered by the Treasury Department will be addressed in a separate rule coordinated with the department. Separating these issues means the final rule alone does not complete all regulatory aspects related to issuer operations. The OCC said the federal framework provides a foundation for innovation, competition and U.S. leadership in payment stablecoins.

The OCC has not yet begun accepting issuer applications or exemption requests, pending final approval from the Office of Management and Budget for the information collection in the forms. The agency said it will separately announce when it begins accepting applications. An issuer whose application is substantially complete with the OCC on January 18, 2027, may request an exemption for a period of no more than 12 months from that date. The OCC generally expects to approve requests for exemption from the prior-approval requirement for existing U.S. issuers, unless its review reveals stronger grounds for denial. Over the longer term, the OCC expects to update the regulations as needed as issuer practices evolve and it gains supervisory experience. On a separate timeline, the Federal Reserve lists a Federal Open Market Committee meeting on October 27 and 28, 2026, followed by a news conference.