OCC Finalizes GENIUS Act Rule for US Stablecoins Effective January 2027

The Office of the Comptroller of the Currency (OCC) has published its final rule implementing the GENIUS Act, which will govern payment stablecoins issued by national banks and certain nonbank entities. This rule, effective January 18, 2027, marks a significant step in the regulation of stablecoins in the United States, transitioning from a legislative framework to operational guidelines.

Key aspects of the final rule include:

• Reserve Backing: Issuers must ensure their stablecoins are backed by eligible reserve assets.
• Capital Requirements: A minimum capital requirement of $5 million is established for stablecoin issuers.
• Custody Practices: Regulations detail the custody of reserve assets and risk management protocols.

Additionally, the OCC clarified that anti-money laundering and sanctions compliance will be addressed through separate rulemaking coordinated with the Treasury Department. The finalized regulations also provide a pathway for existing issuers to apply for waivers, allowing them to continue operations while they adapt to the new rules.

As the stablecoin market evolves, the OCC aims to position the U.S. as a leader in digital assets while ensuring a robust regulatory framework is in place.