The Office of the Comptroller of the Currency (OCC) has finalized its GENIUS Act rule for stablecoin redemptions, which will take effect on January 18, 2027. The rule sets a two-business-day deadline for stablecoin issuers to process redemption requests, starting from the moment the issuer receives the request and completes necessary checks. The OCC removed a proposed automatic seven-day extension for high-demand scenarios, instead requiring issuers to notify the OCC if redemption requests exceed 10% of a stablecoin’s outstanding issuance value in a single day.
The rule clarifies that the redemption clock stops when the issuer initiates the transfer of funds, not when the customer’s bank receives them. This distinction ensures that issuers are held accountable for timely action, even if external banks delay the final credit. The OCC expects extensions to be rare and emphasizes that issuers must be prepared to handle redemptions during stress periods, including from retail holders.
Circle’s current $USDC redemption terms illustrate existing access conditions, with direct redemptions requiring a Circle Mint account and institutional eligibility. The OCC’s revised reporting requirements, including daily observations on redemption backlogs and average processing times, aim to enhance transparency and supervision. Public reserve-composition reports will remain monthly, while quarterly financial reports will become public after submission, with limited confidentiality options for issuers demonstrating competitive harm.
The final rule provides a clearer framework for assessing stablecoin cash-out promises, emphasizing direct access, timely request processing, and distinguishing payment initiation from bank availability. The OCC’s changes reflect a focus on protecting holders while allowing flexibility for issuers operating within the regulatory framework.