Switch to seedless. Get 30% off with SWITCH30 till Oct 26OCC’s GENIUS Act rule sets new stablecoin standards
6.6 Stablecoins OCC finalizes GENIUS Act rule for stablecoins, requiring case-by-case review of rewards and setting clear custody standards. No automatic safe harbor; rule effective January 18, 2027.
The Office of the Comptroller of the Currency (OCC) has finalized its first rule under the GENIUS Act, establishing comprehensive regulations for stablecoin issuance, custody, and rewards programs. Effective January 18, 2027, the rule does not automatically grandfather or provide safe harbor for existing stablecoin yield and rewards programs. Instead, each program will undergo an individual compliance review. Issuers are prohibited from paying yield solely for holding stablecoins, though some third-party rewards may still be allowed. The OCC abandoned a proposed presumption that certain affiliate and third-party rewards are illegal, opting for a case-by-case assessment. The rule also sets clear requirements for digital asset custody, mandating robust risk management and strict adherence to anti-money laundering standards. Temporary waivers may be granted to issuers with pending applications, but reserve and redemption requirements remain in effect. Issues related to the Bank Secrecy Act and sanctions will be addressed separately. This regulatory framework aims to clarify compliance expectations and foster greater institutional adoption of digital assets.
