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- The OCC finalized stablecoin rules on October 21 with a framework taking effect January 18, 2027.
- Covered issuers must continuously hold eligible reserves worth at least their outstanding stablecoins.
- The American Bankers Association argued the rule change could draw deposits away from banks.
The Office of the Comptroller of the Currency (OCC) finalized stablecoin rules on Oct. 21, setting requirements for how covered issuers back tokens and repay holders. The framework takes effect Jan. 18, 2027, giving prospective issuers a timetable for meeting federal standards.
OCC Sets Reserve and Redemption Requirements
The rule implements the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, enacted in July 2025. It covers payment stablecoin issuers under OCC jurisdiction, including relevant foreign issuers, and certain custody activities.
Covered issuers must maintain eligible reserves, such as cash, qualifying bank deposits and short-term U.S. Treasury securities, worth at least as much as their outstanding stablecoins. That requirement applies continuously, rather than only when issuers calculate balances at the end of a day.
The two-business-day redemption period generally begins once the issuer receives the request and necessary conditions, including customer onboarding, are satisfied. Redemption is complete when the issuer fully processes and initiates payment or, at the customer’s request, credits their account with the issuer.
OCC Drops Proposed Presumption Against Indirect Rewards
The framework retains the prohibition on covered issuers paying interest or yield solely for holding, using or retaining a stablecoin. However, the OCC dropped a proposed provision that would have required issuers to justify certain payments involving affiliates and related third parties.
Removing that provision does not exempt all intermediary payments. The OCC said it would assess their purpose and structure, including whether an issuer uses another entity to distribute prohibited yield.
The American Bankers Association criticized that change, arguing it leaves room for rewards economically equivalent to interest. The association warned that such arrangements could draw deposits away from banks and reduce funds available for lending.
OCC Plans Separate Application and Financial-Crime Steps
The agency will announce separately when it begins accepting and processing applications and waiver requests from prospective issuers. Requirements involving the Bank Secrecy Act, anti-money-laundering controls and sanctions will be addressed through a separate rulemaking coordinated with the Treasury Department.
The OCC said it would monitor the industry and revise its supervisory framework as business practices develop. It also plans to supplement the regulations with guidance where appropriate.
