OCC Finalizes Stablecoin Framework Under the GENIUS Act
On October 21, 2026, the Office of the Comptroller of the Currency ("OCC") issued its final rules, effective January 18, 2027, to implement the Guiding and Establishing National Innovation for U.S. Stablecoins Act ("GENIUS Act"). The final rules drop the yield presumption and automatic redemption extension, clarify redemption timing, and change reserve and capital requirements to an "at all times" standard.
As described in our March 2026 Commentary titled "The GENIUS Act in Action: The OCC Proposes Stablecoin Regulations," the originally proposed rules established a framework covering licensing, reserves, redemption, capital, and operational standards. The final rules retain the original structure but make the following significant changes:
- Yield Prohibition. The proposed rules presumed that certain affiliate and third-party arrangements paid prohibited yield. The OCC has now eliminated that rebuttable presumption, citing the market's nascency. But it declined to define "interest" or "yield," did not adopt safe harbors, and retained its anti-evasion authority.
- Redemption. The proposed rules automatically extended redemption to seven calendar days when requests exceeded 10% of outstanding issuance in 24 hours. The final rules eliminate that automatic extension; issuers must instead notify the OCC within 24 hours and may request an extension. The two-business-day ceiling remains, but the clock starts only once a redemption order is received and the customer is onboarded, and redemption occurs when the issuer initiates the outgoing transfer. New disclosures must state that payment stablecoins are not legal tender, deposits, or federally insured.
- Reserves. In stark contrast with the proposed rules, full backing is now required at all times, with no tolerance for intraday shortfalls, although the OCC may permit an under-reserved issuer to continue issuing. New monetization and stress-testing requirements also apply. The OCC also outlined the diversification requirement, cautioning that issuers may need reserves exceeding outstanding issuance.
- Capital. Compliance with capital and operational backstop requirements is now measured "at all times," rather than at quarter-end, and de novo capital requirements no longer distinguish between federal and state issuers.
Bank Secrecy Act and anti-money laundering requirements will follow in a separate rulemaking. Issuers should revisit rewards arrangements, redemption and onboarding procedures, and reserve and capital monitoring before January 18, 2027.
