The US Office of the Comptroller of the Currency (OCC) has issued its first final rule implementing President Donald Trump’s GENIUS Act, setting out how payment stablecoin issuers under its supervision will be regulated ahead of the law’s January 2027 implementation.
The rule, announced establishes requirements covering stablecoin reserves, redemptions, risk management, audits and regulatory supervision. It also changes the OCC’s approach to assessing certain stablecoin reward arrangements involving third parties, leaving regulators to examine individual programmes rather than relying on specific presumptions that such arrangements violate the law.
The final rule takes effect on January 18, 2027, the same date the GENIUS Act’s framework is scheduled to take effect. The OCC is the first federal banking regulator to finalise its rules under the legislation, although other agencies still have work to complete on their respective parts of the framework.
OCC removes presumptions around third-party stablecoin rewards
The GENIUS Act prohibits permitted payment stablecoin issuers from paying interest or yield to holders solely in connection with holding, using or retaining their stablecoins. The restriction has become a point of contention between the crypto and banking industries, particularly because some crypto platforms offer rewards to users holding stablecoins.
In its earlier proposal, the OCC outlined rebuttable presumptions that would have treated certain arrangements between issuers and related third parties as likely attempts to circumvent the prohibition. These included arrangements in which an issuer worked with another party that paid rewards to stablecoin holders.
The final rule removes those specific presumptions. However, this does not mean third-party stablecoin rewards are automatically permitted. The OCC has said it will assess arrangements based on the facts and circumstances of each case, applying the wording of the GENIUS Act.
The regulator has also made clear that existing rewards programmes will not receive automatic protection simply because they were operating before the law was passed. Their compliance will still be assessed under the law’s restrictions.
This leaves crypto platforms with some uncertainty over which rewards programmes will be allowed once the rules take effect. The OCC has not provided a blanket exemption for rewards paid through third parties, and programmes that effectively pay users for holding stablecoins could still fall foul of the law.
What the OCC’s final rule covers
Beyond stablecoin rewards, the final rule establishes requirements for permitted payment stablecoin issuers and foreign issuers that fall under the OCC’s authority, as well as certain custody activities carried out by institutions it supervises.
The rules cover reserve assets, redemption processes, risk management, capital requirements, audits, reporting and supervision. They also set out procedures for applications and registrations, oversight of foreign issuers and circumstances in which an issuer’s approval may be withdrawn.
The OCC said it received hundreds of comments on its earlier proposal from crypto companies, community banks, trade groups, academics and other stakeholders. It incorporated or addressed those submissions as it developed the final framework.
The rule does not cover every aspect of the GENIUS Act’s implementation. Requirements relating to the Bank Secrecy Act, anti-money-laundering obligations and sanctions administered by the Office of Foreign Assets Control will be addressed through separate rulemaking coordinated with the US Treasury Department.
The OCC also said it would continue working with other agencies involved in implementing the legislation. It will announce separately when it begins accepting applications and waiver requests from prospective permitted payment stablecoin issuers.
What the rule means for stablecoin issuers
The final rule gives stablecoin issuers under the OCC’s supervision a clearer set of requirements to prepare for ahead of January 2027. Issuers will need to meet the applicable standards for reserves, redemptions, risk management and reporting, while platforms offering stablecoin rewards will need to assess whether their programmes comply with the law.
The treatment of rewards is likely to remain a key issue for the industry. Banking groups have argued that stablecoin rewards could draw deposits away from traditional banks, while crypto companies have maintained that rewards can support competition and give users more options.
The GENIUS Act’s restrictions remain in place, even though the OCC has changed how it intends to assess certain third-party arrangements. The final rule therefore provides a clearer regulatory process without resolving every question about which reward models are permissible.
For now, stablecoin issuers and platforms will need to prepare for the January 18, 2027, effective date while monitoring further guidance from the OCC and other regulators implementing the law.
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