Stablecoin Shake-Up: OCC Greenlights GENIUS Act Rules, But Rewards Battle Rages On!
The Office of the Comptroller of the Currency has finalized its rules for stablecoins, implementing the GENIUS Act passed in 2025. These new regulations set federal standards for reserve backing, redemptions, and risk management, taking effect in January 2027. Notably, the OCC opted for a case-by-case review of stablecoin rewards offered by third parties, a decision that has implications for banking groups.
The Office of the Comptroller of the Currency (OCC) has officially finalized its rules for implementing the GENIUS Act, becoming the first federal regulator to complete the stablecoin framework established by Congress in July 2025. These comprehensive rules, which will take effect on January 18, 2027, establish federal standards for payment stablecoin issuers across several critical areas, including reserve backing, redemptions, capital requirements, custody, audits, and risk management.
The OCC's framework also introduces a new licensing and supervisory regime applicable to national banks, their subsidiaries, nonbank companies, and foreign issuers that fall under its jurisdiction. Comptroller Jonathan Gould emphasized that the new rule provides a clear and practical framework for stablecoin innovation while maintaining strong standards for critical financial aspects. He also noted that the rule advances