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US OCC finalizes stablecoin rules under GENIUS Act
The US Office of the Comptroller of the Currency (OCC) has issued its final implementing rule for the GENIUS Act, which is set to take effect on January 18, 2027. The regulation establishes a framework for payment stablecoin issuers, covering reserves, redemption, risk management, custody, and a $5 million capital floor.
A key feature of the final rule is the requirement that stablecoin redemptions be completed within a maximum of two business days. Notably, the OCC removed a previously proposed provision that would have automatically extended this deadline to seven days during periods of high redemption volume. Instead, if redemption requests exceed 10% of a brand's outstanding issuance within a 24-hour period, the issuer must notify the OCC within 24 hours and may request an extension, which the regulator can approve or deny.
The rule also mandates enhanced disclosures. Issuers must provide information regarding redemption fees and reserve composition on a website. Additionally, they must explicitly disclose that stablecoins are not legal tender, are not government-backed, and are not covered by FDIC insurance.
While the rule prohibits issuers from paying interest or yield solely for holding a stablecoin, the OCC removed a proposed presumption that would have automatically categorized certain third-party reward arrangements as violations. These arrangements will now be evaluated on a case-by-case basis. The banking industry has expressed concerns, with the Independent Community Bankers of America (ICBA) suggesting that widespread stablecoin adoption could reduce regional bank loans by as much as $850 billion.
Entities
Federal Deposit Insurance Corporation · Genius Act · Independent Community Bankers of America · Jonathan V. Gould · Office of the Comptroller of the Currency · Scott Bessent · United States · United States Department of the Treasury
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] Issuers must disclose redemption fees and reserve composition on a website. www.blockmedia.co.kr · cryptocompass.com · cryptoslate.com
- [● 4 SOURCES] The OCC final rule for the GENIUS Act takes effect on January 18, 2027. www.blockmedia.co.kr · cryptocompass.com · www.tokenpost.kr · cryptoslate.com
- [● 3 SOURCES] Issuers are prohibited from paying interest or yield solely for holding a payment stablecoin. www.tokenpost.kr · cryptonewsland.com
- [● 2 SOURCES] The automatic seven-day extension for high redemption volume was removed from the final rule. www.blockmedia.co.kr · cryptoslate.com
- [● 3 SOURCES] Stablecoin redemption must be completed within a maximum of two business days. www.blockmedia.co.kr · cryptoslate.com
- [○ 1 SOURCE] Stablecoins must be disclosed as not being covered by FDIC insurance. www.blockmedia.co.kr
- [● 2 SOURCES] The OCC dropped the proposed presumption against certain affiliate-routed rewards. www.tokenpost.kr
- [● 3 SOURCES] Issuers must notify the OCC within 24 hours if redemption requests exceed 10% of the issuance in a 24-hour period. www.blockmedia.co.kr · cryptoslate.com