The Office of the Comptroller of the Currency (OCC) has become the first regulator to finalize its rule implementing the GENIUS Act, a stablecoin regulation law signed by President Donald Trump last year. The final rule, published on Wednesday, will take effect on January 18, 2027. Comptroller Jonathan Gould stated that the rule advances President Trump and Secretary Bessent’s vision for American leadership in digital assets, providing a clear framework for stablecoin innovation with strong standards for reserve backing, redemption, and risk management.
The GENIUS Act, signed into law last year, created a federal regulatory framework for stablecoins, requiring them to be fully backed by U.S. dollars or similarly liquid assets, along with mandatory annual audits. The OCC’s final rule establishes a regulatory framework for permitted stablecoin issuers, including banks and non-bank companies, and sets standards for custodying assets. Notably, the final rule diverges from its initial proposal by not including a presumption about third-party relationships, which was initially seen as a potential loophole for evasion.
The treatment of stablecoin rewards has been a contentious issue, particularly as the Senate worked on the broader crypto legislation, the CLARITY Act, which ultimately stalled. The GENIUS Act does not prevent platforms like Coinbase from offering rewards, but banks argue that allowing such rewards could draw deposits away and weaken community institutions. The OCC stated that it would handle stablecoin rewards on a case-by-case basis, ensuring that any third-party relationships do not violate the act.