GENIUS Act rules finalized by OCC ahead of January deadline

The Office of the Comptroller of the Currency has finalized its regulations implementing the GENIUS Act which is set to come into effect on January 18, 2027.

In an October 21 announcement, the OCC said the final rule covers permitted payment stablecoin issuers operating under its jurisdiction, certain foreign issuers, and crypto custody activities carried out by federally supervised financial institutions.

The regulations establish how companies must manage reserves, process redemptions, maintain risk controls, and meet reporting obligations. They cover the licensing and supervision of issuers, including circumstances in which state regulated companies may transition to federal oversight.

Treasury Secretary Scott Bessent welcomed the decision, comparing the GENIUS Act to the National Currency Act of 1863, which established a national framework for bank issued currency.

Bessent described the legislation as a “watershed moment in American finance” and said the OCC’s regulations would provide a foundation for private sector competition and innovation in digital assets.

OCC stablecoin rules establish reserve and redemption standards

The final rule outlined in the agency’s accompanying bulletin introduces a new regulatory framework under 12 CFR Part 15, covering payment stablecoin issuance, reserve assets, redemption procedures, risk management, audits, and supervisory requirements.

Its provisions apply to subsidiaries of national banks and federal savings associations, federally qualified nonbank issuers, and certain state qualified issuers subject to OCC authority. Foreign payment stablecoin issuers operating within the relevant U.S. regulatory framework are covered as well.

Companies looking for federal approval must provide information about their proposed operations, management, reserves, liquidity, and financial controls. The OCC will examine these arrangements as part of its licensing process and ongoing supervision.

The regulations also address custody arrangements and the circumstances under which regulators may revoke or rescind an issuer’s approval.

Alongside the new stablecoin regulations, the agency has amended existing provisions covering bank capital adequacy, prompt corrective action, supervisory assessments, and administrative procedures.

Comptroller Jonathan Gould said the agency was establishing standards for “reserve backing, redemption, and risk management,” drawing on its experience supervising federally regulated financial institutions.

The decision follows a regulatory proposal published in February 2026, which attracted hundreds of comments from cryptocurrency businesses, community banks, industry associations, academics, and other interested parties.

Stablecoin issuers have until January 18 to comply

With the GENIUS Act scheduled to take effect on January 18, companies issuing payment stablecoins in the United States will generally need authorization under the new federal framework.

The OCC has issued separate application guidance addressing existing issuers that may not receive approval before the deadline despite submitting their applications on time.

Companies with substantially complete applications pending by January 18 may request temporary waivers from certain requirements while regulators review their submissions.

Under the legislation, eligible waivers may last up to 12 months, although the OCC expects to limit their duration to the period necessary to address the circumstances behind each request.

The agency said it generally expects to approve qualifying waiver requests from existing issuers unless its review identifies stronger reasons for denying them.

Issuing payment stablecoins without the required authorization can carry criminal penalties once the law takes effect.

Applications will be accepted after the Office of Management and Budget approves the relevant information collection requirements. The OCC has not yet announced when submissions will open.

Once an application is received, the regulator must determine within 30 days whether it is substantially complete and make a licensing decision within 120 days after that determination.

Reporting requirements and AML rules remain separate

Alongside the final regulations, the OCC has published revised reporting forms for permitted domestic issuers and registered foreign stablecoin companies.

The proposed reporting arrangements require weekly information on stablecoin activity and reserves, alongside quarterly financial reports covering issuers’ financial condition and income.

Subject to federal approval, the weekly reporting requirements would begin with the January 25, 2027 reporting date, followed by quarterly reporting beginning March 31.

The revised forms remain open for public comment for 30 days following their publication in the Federal Register.

Separately, requirements concerning the Bank Secrecy Act, anti-money laundering controls, and Office of Foreign Assets Control sanctions are not included in the October 21 final rule.

The OCC previously issued a separate regulatory proposal addressing those obligations in June 2026, with the Treasury Department involved in the rulemaking process.

The GENIUS Act itself was enacted on July 18, 2025, establishing a federal licensing framework for payment stablecoins and restrictions on the issuance and distribution of tokens that do not meet the law’s requirements.

The OCC said it would continue working with other federal agencies responsible for implementing the legislation and would review its supervisory framework as the stablecoin industry develops.