The Office of the Comptroller of the Currency is the first US regulator to finalize its rule under the GENIUS Act. The rule keeps the ban on issuers paying yield to holders, but drops a proposed test that would have treated many third-party rewards programs as violations.
The OCC published the final rule on 21 October. It takes effect on 18 January 2027, the same day the GENIUS Act itself takes effect.
The rule sets reserve and redemption standards for payment stablecoins issued by banks and nonbank companies under the OCC’s oversight. It also covers some related custody activities.
Comptroller of the Currency Jonathan Gould said: “We are providing a clear, practical framework for payment stablecoin innovation.”
Who the rule covers
According to Cointelegraph, the rule applies to:
- National banks, federal savings associations and federal branches, along with their subsidiaries
- Nonbank firms that apply for or receive federal qualified issuer status
- State-qualified issuers, in cases where the OCC has regulatory or enforcement authority over them
- Stablecoin issuers based outside the US, which the rule also sets standards for, according to The Block
Reserves and redemptions
Issuers must hold reserves at least equal to the value of their outstanding stablecoins. They must generally process redemption requests within two business days.
Gould said the rule includes “strong standards for reserve backing, redemption, and risk management.”
The yield ban and the rewards question
The GENIUS Act bars stablecoin issuers from paying interest or yield to holders. The final rule keeps that ban for payments made solely for holding, using or retaining a stablecoin.
The main change from the proposal concerns third parties. The proposed rule, issued in March, included a presumption that certain arrangements between issuers and affiliates or related third parties broke the yield ban. The final rule removes that presumption.
The OCC will look at each arrangement on its own facts instead. In its words: “the OCC will apply the language of the statute to the facts and circumstances of any particular arrangement.”
According to American Banker:
- Payments made by an agent on an issuer’s behalf, solely for holding or using a stablecoin, would likely still be prohibited
- Transaction-based payments that aren’t interest or yield, or aren’t made solely for holding a stablecoin, “would not be prohibited”
A regulatory official told reporters the OCC can still act against clear workarounds: “we do have authority to enforce against evasions of the act.”
The GENIUS Act doesn’t stop platforms such as Coinbase from offering rewards on stablecoin balances. Banking groups have pushed back on those programs, warning that stablecoins could pull $6.6T in deposits away from banks, a figure based on a Treasury Borrowing Advisory Committee estimate.
What officials said
Gould said in a statement: “Today’s final rule advances President Trump and Secretary Bessent’s vision for American leadership in digital assets.”
Treasury Secretary Scott Bessent said: “The GENIUS Act marks a watershed moment in American finance.”
How it fits with wider US crypto rules
President Trump signed the GENIUS Act in July 2025. Other federal agencies are still working on their own parts of it.
Stablecoin rewards were also a major dispute in the Senate’s broader market structure bill, the CLARITY Act. That bill stalled after the full Senate failed to advance it in a procedural vote.
What happens next
The OCC will separately announce when it starts accepting issuer applications and waiver requests. It will also write separate rules with the Treasury Department covering anti-money-laundering and sanctions requirements, including the Bank Secrecy Act.
The final rule takes effect on 18 January 2027.
