OCC finalizes stablecoin rule, narrows yield ban enforcement

The Office of the Comptroller of the Currency on Wednesday issued a final rule implementing the GENIUS Act for the issuance of payment stablecoins and certain custody activities by entities under its jurisdiction, putting the standards in a new 12 CFR 15 covering reserve assets, redemption, risk management, custody and capital, effective January 18, 2027, with Bank Secrecy Act and sanctions rules to follow in a separate rulemaking with the Treasury. The final rule removes the proposed rebuttable presumption that arrangements with affiliates or related third parties violate the act’s ban on paying interest or yield to holders, with the agency saying it does not believe a presumption is appropriate for a nascent market at this time and that it expects to revisit the question as it gains supervisory experience. The American Bankers Association said the narrower approach preserves the status quo for crypto platforms, while Comptroller Jonathan Gould said the rule provides a clear, practical framework with strong standards for reserve backing, redemption and risk management.