First out the gate: OCC debuts final rule implementing Trump-signed GENIUS Act

The Office of the Comptroller of the Currency is the first regulator to finalize its GENIUS Act stablecoin rule.

On Wednesday, it published its final rule implementing a law signed by President Donald Trump last year to regulate stablecoins. The banking regulator said it will take effect on Jan. 18, 2027.

"Today's final rule advances President Trump and Secretary Bessent’s vision for American leadership in digital assets," said Comptroller of the Currency Jonathan Gould in a statement. "We are providing a clear, practical framework for payment stablecoin innovation, with strong standards for reserve backing, redemption, and risk management."

Other agencies have been working on implementing their parts of the Guiding and Establishing National Innovation for U.S. Stablecoins, or GENIUS, into law since Trump signed it into law last year. The bill created a federal regulatory framework for stablecoins, including requiring stablecoins to be fully backed by U.S. dollars or similarly liquid assets, as well as mandatory annual audits.

The OCC's final rule creates a regulatory framework for permitted stablecoin issuers, creating pathways for banks and non-bank companies to go forth with payment stablecoin activities. It also establishes standards for stablecoin issuers outside of the U.S. and sets standards for custodying assets.

Notably, the final rule diverges from its initial proposed rule in its treatment of stablecoin rewards, which allow users to earn interest on deposited funds.

The OCC's proposed rule incorporated the GENIUS approach in that it bans issuers from directly paying interest on stablecoins. The proposed rule also created a presumption that certain arrangements could be unlawful if issuers had certain types of business relationships with third parties.

The final rule does not include that presumption about third parties, a regulatory official said on a call with reporters, because the initial proposed language was an estimate of whether evasion would be likely, rather than an understanding of there being a "nascent market."

The treatment of stablecoin rewards has become a major point of contention as the Senate worked to pass broader crypto legislation, the CLARITY Act — which has ultimately come to a standstill after the full Senate failed to advance the bill in a procedural vote.

Earlier in the year, debate over how to regulate those rewards heated up, causing fierce debate between banks and the crypto industry. The GENIUS Act did not prevent platforms like Coinbase from providing rewards, but banks say allowing those kinds of rewards could draw deposits away and potentially weaken community institutions.

The regulatory official said it would be a case-by-case basis.

"Obviously, to the extent that issuers have relationships with third parties, we would seek to ensure that those relationships do not violate the statutory prohibition, and we do have authority to enforce against evasions of the act," they said. "And if we see a clear evasion, then we could pursue it accordingly."