OCC finalizes stablecoin rule under GENIUS Act for U.S. issuers

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OCC finalizes stablecoin rule

Highlights

OCC finalizes stablecoin rule under the GENIUS Act, creating a federal regime with reserve, redemption, and risk management standards for U.S. and foreign issuers.
The final rule, effective from Wednesday, removes a presumption banning certain third-party stablecoin rewards arrangements, opting for case-by-case regulatory review.
GENIUS Act mandates stablecoins be fully backed by U.S. dollars or liquid assets and subject to annual audits, while interest rewards remain a contentious issue for banks.

Implementation framework and effective date

As reported by The Block, citing the Office of the Comptroller of the Currency, the agency on Wednesday publishes its final rule implementing the stablecoin law signed by President Donald Trump last year. The OCC says the measure creates a regulatory framework for permitted stablecoin issuers and opens pathways for banks and non-bank companies to conduct payment stablecoin activities.

The rule also sets standards for stablecoin issuers outside the U.S. and for custodying assets. In a statement, Comptroller of the Currency Jonathan Gould says the rule advances the administration's digital asset agenda and provides a practical framework with standards for reserve backing, redemption and risk management.

The broader GENIUS Act establishes a federal regime for stablecoins, including requirements that tokens be fully backed by U.S. dollars or similarly liquid assets and subject to annual audits. Other agencies are still working on their own implementing rules under the law.

Rewards debate shapes market implications

The final rule differs from the OCC's initial proposal in its treatment of stablecoin rewards, which let users earn interest on deposited funds. While the proposed rule bans issuers from directly paying interest on stablecoins in line with the statute, the final version removes a presumption that certain third-party business arrangements could be unlawful.

A regulatory official says that presumption is dropped because the earlier language reflected an estimate about likely evasion rather than a settled view of a still nascent market. The official adds that arrangements involving third parties will be reviewed on a case-by-case basis, and the OCC retains authority to act if it identifies clear efforts to evade the law.

The issue remains a sensitive fault line across the crypto and banking sectors as lawmakers debate broader digital asset legislation. Banks argue that allowing rewards through platforms such as Coinbase could pull deposits from traditional institutions, including community banks, while the GENIUS Act itself does not bar platforms from offering such incentives.

Our earlier article on SEON’s expansion in the Philippines explained how rising digital payments and stricter fraud-control requirements are boosting demand for risk management tools across banks, remittance providers, and payments businesses. It also highlighted SEON’s partnership with Exist Software Labs as a route into more regulated segments, reflecting how compliance pressures are reshaping payment-channel infrastructure and oversight.

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