OCC finalizes its rule implementing the GENIUS Act for stablecoin issuers

The Office of the Comptroller of the Currency (OCC) issued a final rule on October 21 implementing the GENIUS Act, the US law that sets up a federal framework for payment stablecoins, the agency said. The rule and the law take effect on January 18, 2027.

What the rule covers

The rule applies to permitted payment stablecoin issuers and foreign payment stablecoin issuers under the OCC's supervision, and to certain custody activities of OCC-supervised entities, according to the agency.

Comptroller of the Currency Jonathan V. Gould said the rule sets "strong standards for reserve backing, redemption, and risk management." The release does not list specific numbers; those are in the rule text, published in the Federal Register on October 23. Among them:

• Issuers must redeem stablecoins within two business days of a request.
• At least 5% of reserves must be held as demand deposits.
• Issuers must hold minimum capital of at least $5 million on an ongoing basis.

Bank Secrecy Act, anti-money-laundering, and sanctions requirements are not part of this rule. The OCC said they will be handled in a separate rulemaking.

Why it matters

A federal rulebook with defined reserve and redemption standards determines which issuers can operate in the US under federal oversight and on what terms. The OCC's final rule gives issuers under its supervision a concrete view of the federal requirements before the law takes effect.

What it could mean for traders

Clearer reserve and redemption rules reduce the uncertainty about what backs a regulated stablecoin and how quickly it can be redeemed. That matters most in stress events, when traders rely on stablecoins holding their value. The remaining steps include the separate anti-money-laundering and sanctions rulemaking and the OCC's announcement of when it will start accepting applications, which it said it will make separately.