Crypto

OCC Finalizes GENIUS Act Stablecoin Rules, Drops Proposed Yield Presumption

The OCC's final GENIUS Act rule, published October 23, sets two-business-day redemption, a $5 million capital floor and a 12-month expense backstop for stablecoin issuers, effective Jan. 18, 2027.

Oct 24, 2026 - 07:20

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The Office of the Comptroller of the Currency has finalized the rules that will govern payment stablecoin issuers under its supervision, setting requirements for reserves, redemption, capital and custody ahead of the January 18, 2027, effective date of the GENIUS Act. The agency announced the final rule on October 21, 2026, and the 195-page document was published in the Federal Register on Friday, October 23.

Who the rule covers

The rule applies to national banks, federal savings associations and federal branches and their subsidiaries, as well as foreign payment stablecoin issuers, nonbank entities seeking approval as federal qualified payment stablecoin issuers, and state qualified issuers over which the OCC has authority under the act, according to OCC Bulletin 2026-50. Most provisions sit in a new 12 CFR Part 15 covering permitted activities, reserve assets, redemption, risk management, audits and reporting, custody, applications and capital. The rule also amends the OCC's capital adequacy, prompt corrective action, fee assessment and procedural regulations.

The GENIUS Act, enacted on July 18, 2025, generally prohibits anyone other than a permitted payment stablecoin issuer from issuing a payment stablecoin in the United States. Rules related to the Bank Secrecy Act, anti-money laundering and sanctions compliance are being handled in a separate rulemaking with the Treasury Department, the OCC said in its news release.

Yield presumption removed

The act bars permitted issuers from paying holders interest or yield solely in connection with holding, using or retaining a payment stablecoin. The OCC's March 2026 proposal had included a rebuttable presumption that certain arrangements with affiliates and related third parties violated that prohibition. The final rule eliminates the presumption. The agency wrote that the presumption "could have been both overinclusive and underinclusive," and that it would instead monitor arrangements through its review of applications and ongoing supervision, take action where it finds transactions that violate or evade the prohibition, and consider a future rulemaking to clarify the ban.

Redemption and disclosures

Issuers must publish redemption policies stating that timely redemption may not exceed two business days after a requested redemption, and must redeem any amount of one stablecoin or more, subject to customer screening and onboarding. The proposal's automatic extension of the redemption window during heavy outflows was dropped. Under the final text, an issuer that receives redemption requests exceeding 10% of the outstanding issuance value of a stablecoin brand within 24 hours must notify the OCC within 24 hours and may ask the agency to extend the redemption timeframe, which the OCC can grant or deny. Issuers must also disclose that payment stablecoins are not legal tender and are not deposits.

Capital and operational backstop

A newly approved issuer must hold minimum capital equal to the greater of $5 million or the amount set in its licensing conditions, generally for 36 months, and all permitted issuers must hold at least $5 million on an ongoing basis. Issuers must also maintain an operational backstop of assets equal to 12 months of total expenses, and debt used to fund the backstop may not exceed 50% of that requirement, according to the rule text.

Reaction and next steps

The OCC received about 328 comments on the proposal, according to the Federal Register document. "We are providing a clear, practical framework for payment stablecoin innovation, with strong standards for reserve backing, redemption, and risk management," Comptroller of the Currency Jonathan V. Gould said. Treasury Secretary Scott Bessent called the GENIUS Act "a watershed moment in American finance." The agency said it will announce separately when it will begin accepting applications and waiver requests from prospective issuers.

The Independent Community Bankers of America said it remains focused on ensuring the OCC's policies protect against the risks stablecoins pose to community bank lending, according to an ICBA summary.

Market backdrop

The rule arrived during a soft week for crypto prices. U.S. spot bitcoin exchange-traded funds recorded $635.6 million in net outflows on Thursday, October 22, reversing $528.4 million of inflows the previous day, The Block reported. Bitcoin traded at $80,841.90 as of 1:15 a.m. ET on Saturday, down 1.25%, according to Investing.com.