OCC Finalizes GENIUS Act Stablecoin Rules Ahead of January 18, 2027 Effective Date

The Office of the Comptroller of the Currency finalized its rules implementing the GENIUS Act on Wednesday, establishing federal standards for payment stablecoin issuers before the law takes effect on January 18, 2027. The new regulations govern reserve assets, redemption, risk management, audits, custody, capital backstops, and foreign issuer oversight across national bank subsidiaries, federal nonbank issuers, and transitioning state-qualified firms. Signed into law in July 2025, the GENIUS Act prohibits unpermitted entities from issuing payment stablecoins in the US and restricts digital asset providers from offering non-compliant tokens to US users. Anti-money laundering, Bank Secrecy Act, and sanctions requirements were excluded from this package and will be finalized in a separate rulemaking with the Treasury Department following April proposals from FinCEN and OFAC. Regulators missed an earlier July deadline after proposing the initial rules in February for a 60-day comment period, and the OCC stated it will announce separately when it begins accepting issuer applications and waiver requests. "We are providing a clear, practical framework for payment stablecoin innovation, with strong standards for reserve backing, redemption, and risk management." — Jonathan Gould, Comptroller of the Currency