OCC Finalizes Comprehensive Rules for Payment Stablecoins and Custody Under the GENIUS Act

The United States Office of the Comptroller of the Currency has officially finalized a sweeping set of rules governing payment stablecoin reserves, redemption procedures, and associated custody activities. Announced on Wednesday, the regulatory framework marks a critical milestone in the implementation of the GENIUS Act for financial institutions and related entities operating under the federal regulator’s direct jurisdiction.

The comprehensive final rule establishes rigorous standards for the digital asset sector, mandating that stablecoin issuers maintain robust reserve assets worth at least as much as their total outstanding stablecoin supply. Furthermore, the framework requires issuers to generally process redemption requests within two business days, establishing a reliable timeline for consumers and institutional participants seeking to convert their digital tokens back into fiat currency.

According to the agency’s official announcements and documentation, the new rule applies broadly across the traditional and digital banking landscape. It encompasses national banks, federal savings associations, federal branches and their respective subsidiaries, as well as nonbank firms that actively seek or ultimately receive federal qualified issuer status. Additionally, the regulatory scope extends to state-qualified issuers in scenarios where the OCC maintains direct regulatory or enforcement authority over their operations.

Market participants and regulated institutions will have several months to prepare for the transition, as the final rule alongside the broader GENIUS Act framework is scheduled to officially take effect on January 18, 2027. This implementation timeline is designed to give institutions adequate runway to align their internal risk management, reserve accounting, and compliance systems with the newly established federal benchmarks.

We are providing a clear, practical framework for payment stablecoin innovation, with strong standards for reserve backing, redemption, and risk management, said Comptroller of the Currency Jonathan Gould, emphasizing the agency’s dual goal of fostering technological advancement while safeguarding financial stability.

In shaping the final text of the regulation, the OCC made notable adjustments based on feedback and administrative review. Most prominently, the agency chose to drop a previously proposed presumption that certain operational arrangements involving affiliates or related third parties would automatically violate the statutory ban on paying yield.

Despite removing that specific presumption, the final rule firmly retains the core legislative ban preventing issuers from paying holders interest or yield solely for holding, using, or retaining their payment stablecoins. To ensure compliance across the industry, the OCC explicitly noted that it retains broad regulatory authority to take enforcement action against any creative attempts or complex structures designed to evade that statutory prohibition.

Looking ahead at operational readiness, the OCC stated that it will announce separately the precise timeline and procedures for when it will begin processing formal issuer applications and individual waiver requests. In tandem with these developments, the agency and the U.S. Department of the Treasury indicated that they will address Bank Secrecy Act obligations, anti-money-laundering protocols, and economic sanctions requirements through separate, dedicated rulemaking initiatives in the future.