GENIUS Act rules finalized by OCC ahead of January deadline

The Office of the Comptroller of the Currency has finalized its regulations implementing the GENIUS Act which is set to come into effect on January 18, 2027. Summary The OCC has finalized federal regulations under the GENIUS Act covering stablecoin issuance, reserve backing, redemptions and supervision. The new rules take effect on January 18, 2027, while existing issuers with pending applications may qualify for temporary compliance waivers. Stablecoin issuers looking for federal approval will need to provide details about their operations, reserves, liquidity and risk management arrangements. The OCC has proposed weekly and quarterly reporting requirements, while anti money laundering and sanctions regulations are being handled through a separate rulemaking process. In an October 21 announcement, the OCC said the final rule covers permitted payment stablecoin issuers operating under its jurisdiction, certain foreign issuers, and crypto custody activities carried out by federally supervised financial institutions. The regulations establish how companies must manage reserves, process redemptions, maintain risk controls, and meet reporting obligations. They cover the licensing and s...