The Office of the Comptroller of the Currency finalized federal rules on October 21, 2026, to implement the GENIUS Act, setting requirements for payment stablecoin issuers and certain digital asset custody activities.
The framework relaxes some proposed reserve restrictions but leaves unresolved whether third-party cryptocurrency platforms can pay customers yield on stablecoin balances.
The rules implement legislation signed into law by President Trump in 2025.
According to the OCC, the framework establishes standards for reserve backing, redemption, and risk management for permitted payment stablecoin issuers and foreign issuers under its jurisdiction.
Reserve Restriction Removed
One significant change removes a proposed restriction that would have limited issuers' ability to hold longer-term Treasury securities.
The final rules also address certain custody activities conducted by entities supervised by the OCC, according to the regulator's announcement.
The treatment of yield payments remains a central unresolved issue.
The GENIUS Act prohibits stablecoin issuers from paying interest directly, but the OCC removed a proposed provision that would have barred cryptocurrency exchanges and other third-party platforms from offering yield on customers' idle stablecoin balances.
Instead, the regulator said it would assess these arrangements individually.
The approach leaves open questions about which third-party payment structures will be permitted under the new framework.
Banks and Crypto Split on Yield
TD Cowen policy analyst Jaret Seiberg said the decision could disadvantage banks because it does not completely prohibit platforms from paying yield on stablecoin holdings.
"We see this as creating uncertainty," Seiberg wrote to clients on Wednesday.
"It also suggests the Supreme Court ultimately will need to decide what yield payments are legal."
Seiberg's assessment reflects a broader disagreement between the banking and cryptocurrency industries.
Crypto companies have argued that they should be allowed to compete with banks by offering returns on stablecoin balances, while banks have warned that such products could draw deposits away from traditional institutions without imposing equivalent regulatory obligations on competitors.
The OCC's final rule drew hundreds of comments during the rulemaking process, according to the agency.
Contributors included cryptocurrency companies, community bankers, trade groups, academics, and other stakeholders.
Circle Internet Group, the country's largest stablecoin issuer, welcomed the final framework.
Dante Disparte, Circle's chief strategy officer and head of global policy, described the rules as an important step toward establishing lasting regulatory standards for the industry.
"We welcome the OCC's final rules implementing the GENIUS Act — an important milestone in translating America's leadership on stablecoin legislation into clear, durable regulatory standards," Disparte said in a statement.
Coinbase Global also expressed support for the rules.
Faryar Shirzad, the company's chief policy officer, reacted positively in a post on X.
"There's a lot to like," Shirzad said, referring to the new rules.
Treasury Secretary Scott Bessent said the legislation establishes a federal framework for payment stablecoins, comparing its significance to the National Currency Act of 1863, which established a national framework for bank-issued currency.
"The GENIUS Act marks a watershed moment in American finance, further cementing the United States as the crypto capital of the world," Bessent said.
"Just as President Abraham Lincoln's National Currency Act of 1863 established a national framework for bank-issued currency, the GENIUS Act establishes a federal framework for payment stablecoins in the digital age."
OCC Comptroller Jonathan V.
Gould said the final rules advance the administration's digital asset policy by providing standards intended to support responsible industry development.
"Today's final rule advances President Trump and Secretary Bessent's vision for American leadership in digital assets," Gould said.
"We are providing a clear, practical framework for payment stablecoin innovation, with strong standards for reserve backing, redemption, and risk management."
The final rule covers the regulatory provisions the OCC must establish under the GENIUS Act, except for requirements involving the Bank Secrecy Act, anti-money laundering, and sanctions administered by the Office of Foreign Assets Control.
Those matters will be addressed through separate rulemaking coordinated with the Treasury Department.
The OCC said it would continue coordinating with other federal agencies responsible for implementing the legislation.
The regulator will announce separately when it begins accepting and processing applications and waiver requests from prospective permitted payment stablecoin issuers.
The final rule and the GENIUS Act are scheduled to take effect on January 18, 2027, according to the OCC.
