The U.S. federal regulator overseeing national banks and savings associations approved final rules implementing the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS Act), which governs the issuance of payment stablecoins and related activities.
The Office of the Comptroller of the Currency (OCC) released the final regulatory requirements under the GENIUS Act. The rules establish procedures for issuing payment stablecoins and requirements for reserve backing, token redemption, risk management, reporting, and supervision of issuers under the OCC’s jurisdiction.
Most of the requirements are incorporated into the new 12 CFR Part 15 of federal banking regulations. The provisions apply to national banks and their subsidiaries, federal savings associations, federal branches of foreign banks, qualified nonbank issuers, and certain categories of state-licensed and foreign issuers.
Following a public consultation that generated about 328 comments, the OCC made several changes to its original proposal, including:
The minimum daily liquidity requirement was reduced from 10% to 5% of reserve assets. The 40% limit on reserve concentration with a single counterparty remained in place, subject to specified exceptions.
The separate weekly liquidity requirement was eliminated, while some quantitative requirements were replaced with stress-testing and risk management obligations.
The maximum 2-day stablecoin redemption period was retained, with clarification on how the deadline is calculated. The requirement also applies to cross-border transactions.
Issuers were permitted to offer multiple stablecoin brands, including through white-label arrangements, without having to establish a separate issuer for each token.
Restrictions on withdrawing excess reserves were eased. Instead of the initially proposed monthly withdrawals, issuers will be able to withdraw surplus reserves at any time, provided they maintain reserve backing of at least 1:1.
The approach to the prohibition on yield payments was relaxed. Payments to stablecoin holders through partners and affiliates will no longer automatically constitute a violation. However, the prohibition on paying interest remains in effect.
The scope of permitted activities was expanded to include holding crypto assets to pay network fees and test blockchain infrastructure, managing foreign exchange risks, and using trust arrangements to protect reserves.
Under the final rules, issuers must maintain reserve backing for outstanding stablecoins at a ratio of at least 1:1 at all times. Eligible reserve assets may include:
Cash;
Demand deposits at qualifying financial institutions;
U.S. Treasury securities with a remaining maturity of no more than 93 days;
Certain repurchase and reverse repurchase agreements;
Investment funds that meet the prescribed criteria.
Certain reserve assets may also be held in tokenized form, provided they retain equivalent legal rights.
State-regulated nonbank issuers will be required to transition to federal supervision if their aggregate outstanding stablecoin issuance exceeds $10 billion. Under certain conditions, these companies may request an exemption allowing them to remain under state supervision.
In addition to introducing 12 CFR Part 15, the OCC amended 4 existing areas of regulation:
Capital adequacy requirements. The rules clarify how banks that own stablecoin issuers must calculate capital, including excluding subsidiary issuers’ assets from consolidated balance sheets and adjusting capital to reflect their profits and losses.
Prompt corrective action procedures. The OCC revised how banks calculate total assets to account for investments in stablecoin-issuing subsidiaries.
Supervisory assessment calculations. The rules establish specific methods for calculating assessments for stablecoin issuers and banks engaged in related activities, including discounts for certain reserve assets.
Rules of practice and procedure. The OCC extended procedures for supervisory investigations, enforcement actions, and revocation of authorizations to payment stablecoin issuers.
Separate regulations will address compliance with the Bank Secrecy Act (BSA), anti-money laundering (AML) requirements, and sanctions administered by the Office of Foreign Assets Control (OFAC). These matters weren’t included in the OCC’s final rules and will be addressed in a separate regulation developed jointly with the U.S. Treasury Department.
The GENIUS Act was enacted on July 18, 2025, and work on implementing regulations began before the law took effect. The OCC published its initial regulatory proposal on February 25, 2026. In May 2026, an updated bill drafted after a year of bipartisan negotiations was released. The final rules reflect comments and recommendations submitted by market participants, industry associations, and other stakeholders.
The OCC’s regulatory requirements and the GENIUS Act itself will take effect on January 18, 2027. By that date, payment stablecoin issuers under the OCC’s jurisdiction will need to prepare to comply with the new licensing, reserve backing, token redemption, and supervisory reporting requirements.
U.S. regulators continue to develop the regulatory framework for the stablecoin market. The Treasury Department and FASB introduced proposals addressing the circulation of digital assets and their treatment in corporate financial reporting. The FDIC, Fed, OCC, NCUA, and FinCEN proposed rules requiring licensed payment stablecoin issuers to implement comprehensive Customer Identification Programs (CIPs). The CFTC issued an interpretive letter formally allowing national trust banks to issue payment stablecoins and use them as margin collateral in derivatives markets.
