OCC finalizes stablecoin rules for January 2027, leaving rewards dispute unresolved

The Office of the Comptroller of the Currency finalized regulations implementing the GENIUS Act on Wednesday. The OCC became the first federal regulator to finish implementing the stablecoin framework that Congress approved in July 2025. The regulations take effect on January 18, 2027.

The regulations establish federal requirements for payment stablecoin issuers concerning reserves, redemptions, capital, custody, audits and risk management. The licensing and supervision framework covers national banks, bank subsidiaries, nonbank companies and foreign issuers within OCC jurisdiction. Comptroller Jonathan Gould said the framework provides practical guidance for innovation while imposing strong reserve, redemption and risk-management standards. Gould described the regulations as supporting President Trump and Secretary Bessent's vision of American leadership in digital assets.

The GENIUS Act became law last year as the first federal statute governing stablecoins. Stablecoins are dollar-pegged tokens used as the principal trading pair for bitcoin on most exchanges. The law mandates reserves equal to outstanding stablecoins and requires annual audits. The law also instructed bank regulators to develop implementing regulations. The Federal Reserve and the Federal Deposit Insurance Corporation have published proposals. Treasury is preparing a proposal of Treasury's own.

The GENIUS Act prohibits issuers from providing interest or yield to stablecoin holders. The law does not cover rewards that exchanges or other third parties provide on stablecoin balances. Banking groups have spent months lobbying to close what the groups call the "stablecoin loophole". Banking groups argue that token yield could draw deposits away from banks and weaken lending.

The OCC's February proposal would have presumed that some issuer arrangements with third parties violated the yield prohibition. The final regulations remove that presumption and instead provide for individual reviews. Crypto in America reported that an OCC official said the agency would allow the market to develop and respond as issues arise. The official declined to assess whether current exchange rewards programs comply, while noting that the OCC can act against clear attempts to evade the prohibition.

The decision represents a setback for banks. Banks had sought OCC action after the Clarity Act, a broader cryptocurrency market-structure bill, failed a procedural vote in the Senate in September. Stablecoin yield was a major source of disagreement during those negotiations.

The final regulations remove a proposed 20-day weighted-average maturity ceiling for reserve assets, permitting issuers to hold longer-dated Treasuries. Issuers can withdraw excess reserves whenever needed, rather than monthly, provided reserves continue to equal outstanding stablecoins. The OCC also deleted a provision that would have lengthened redemption deadlines during a rush of withdrawal requests. Crypto in America reported that issuers must notify the OCC within 24 hours when daily redemption requests surpass 10% of a stablecoin's outstanding value.

The OCC has not announced when prospective issuers can begin submitting applications. The OCC and Treasury will address anti-money laundering and sanctions requirements through a separate rulemaking.