OCC Finalizes Stablecoin Regulations Under GENIUS Act

The Office of the Comptroller of the Currency (OCC) has finalized regulations implementing the GENIUS Act, which establishes a federal framework for payment stablecoins. These regulations, published on October 21, 2026, will take effect on January 18, 2027, and outline rules for stablecoin issuers and related activities.

The finalized rule includes provisions for compliance with the Bank Secrecy Act, anti-money laundering requirements, and sanctions, which will be addressed separately in coordination with the Treasury Department. The new regulations are encapsulated in a section of federal regulations, 12 CFR 15, detailing standards for stablecoin activities, reserve assets, redemption procedures, risk management, audits, reporting, and regulatory supervision.

Additionally, the framework covers issuer applications, registrations, oversight of foreign issuers, and the conditions under which an issuer's approval may be revoked. The OCC has stated that the final rule reflects feedback received after its proposed rulemaking in February 2026, indicating a thorough review process.

The GENIUS Act, enacted on July 18, 2025, prohibits unauthorized entities from issuing stablecoins in the U.S. and restricts digital asset service providers from offering or selling payment stablecoins unless compliant with the law. The OCC will oversee both domestic and foreign payment stablecoin issuers, ensuring adherence to the new regulatory framework.

The final rule also addresses custody activities for institutions under OCC supervision, marking a significant step towards enhancing the regulatory landscape for stablecoins in the U.S.

New Developments in Stablecoin Usage

On October 20, 2026, Shinhan Card signed a business agreement with SBI VC Trade and SBI XDC Network APAC to test yen stablecoin payments for Japanese tourists in South Korea. This initiative aims to allow tourists to pay for services using yen-denominated stablecoins linked to a payment card, creating a seamless transaction experience similar to traditional credit card payments.

The pilot program will also explore wallet-to-wallet transfers and faster cross-border trade settlements, utilizing blockchain technology provided by SBI XDC Network APAC. Compliance measures, including anti-money laundering (AML) controls and fraud detection systems, will be evaluated during the test.

The partnership is particularly focused on the tourism corridor between Japan and South Korea, which saw over 10 million visitor movements in the first eight months of 2026. Shinhan Financial Group's Chairman Jin Ok-dong supports the initiative, emphasizing the importance of strengthening global digital asset frameworks.

Commercial rollout of the stablecoin payment system will depend on meeting regulatory requirements in both countries, and the success of the pilot program could influence future adoption of stablecoins in the region.

New Developments on GENIUS Act Regulations

The Blockchain Association has formally requested the US Treasury to clarify the rules surrounding DeFi software and foreign stablecoin issuers under the GENIUS Act. They emphasize the need for a clear distinction between customer-facing financial businesses and infrastructure providers like self-custody software and validators.

One major concern is the definition of a digital asset service provider, with the association advocating for a framework that does not inadvertently include unrelated software and market participants.

Additionally, the group is contesting how the rules might interpret participation in unlawful stablecoin issuance, arguing that enforcement should require genuine knowledge and meaningful assistance rather than mere secondary-market activity.

There are also concerns regarding compliance requirements for foreign-issued stablecoins, suggesting that these should be based on accessible regulatory information rather than placing the burden on service providers to investigate issuers with whom they have no direct relationship.

These advocacy positions have not yet been adopted by the Treasury, and regulators must balance the industry's requests with their responsibilities to oversee payment products and financial crime.