The US Treasury has released a final rule implementing the GENIUS Act, putting a federal framework around payment stablecoins.
The detailed version comes from the Office of the Comptroller of the Currency (OCC), which finalized its rule on October 21, 2026. It sets federal standards for payment stablecoin issuers that fall under the OCC’s jurisdiction.
What the rule actually requires
The rule takes effect on January 18, 2027. That is the same day the GENIUS Act itself becomes effective, so the law and the rulebook arrive together.
The statute’s full name is the Guiding and Establishing National Innovation for U.S. Stablecoins Act. It was enacted on July 18, 2025, which gives the industry roughly 18 months between signature and enforcement.
The rule covers several types of institutions:
- National banks
- Federal savings associations
- Certain subsidiaries of those institutions
- Foreign payment stablecoin issuers
The core requirement is reserves. Issuers must hold at least 1:1 backing in eligible, high-quality assets. That includes US currency, insured deposits and short-term Treasury securities.
Redemption matters just as much. Issuers need clear redemption policies, and those redemptions must generally be completed within two business days.
The yield question gets a softer touch
The most closely watched provision deals with interest. Direct interest payments tied to simply holding a payment stablecoin are prohibited.
The final version is more flexible than the proposal on indirect arrangements. Regulators removed a proposed rebuttable presumption covering rewards or yield programs run through affiliates or third parties.
That presumption is gone. Third-party and affiliate yield arrangements will now be reviewed case by case.
The rule also gives permitted issuers some flexibility around reserve assets.
Some things are left out entirely. The rule does not cover Bank Secrecy Act, anti-money laundering or sanctions requirements. The Treasury will handle those through separate regulations.
The application process and the timeline
Paperwork has its own timeline. Applications and waivers can be submitted once the Office of Management and Budget approves the related information collections.
There is also a path for issuers already in the queue. Those with substantially complete applications pending by the rule’s effective date can seek waivers.
The OCC’s rule is the first comprehensive federal framework for stablecoins under its supervision.
Treasury Secretary Scott Bessent called the development a watershed moment for American finance. He compared the GENIUS Act’s impact on stablecoins to the National Currency Act of 1863 and its role in shaping US financial regulation.
What this means for issuers, banks and holders
For stablecoin holders, the main implication is predictability. Federally supervised issuers will need full reserves in conservative assets and a firm redemption window.
The interest ban is the biggest strategic variable. A token that cannot pay holders directly competes mainly on convenience and speed, not on return.
Foreign issuers are also in scope, which suggests the framework aims to set terms for anyone serving US users from abroad.
The separate AML and sanctions rules are the remaining piece. Until the Treasury publishes them, the compliance picture for issuers is incomplete.
The calendar is now the key thing to track. January 18, 2027 is the date the law and the rule go live, and issuers have until then to get reserves, redemption systems and applications in order.
OMB approval of the information collections is the practical trigger for applications. Until that happens, prospective issuers know the rules but cannot formally apply under them.
Disclosure: This article was edited by John Chen. For more information on how we create and review content, see our Editorial Policy.