New OCC stablecoin rule resets redemptions, and banks face big shifts

The Office of the Comptroller of the Currency (OCC) has dropped a proposed automatic seven-day stablecoin redemption extension, while defining timely redemption as the point at which the issuer sends the money.An issuer can meet its payment deadline before an outside bank makes the proceeds available.The OCC’s final GENIUS Act rule, issued Oct. 21 and effective Jan. 18, 2027, retains an ordinary ceiling of two business days following a qualifying stablecoin redemption request. The endpoint is fully processed payment initiation, or, if the customer requests it, a credit to an account with the issuer.The rule applies to issuers within the OCC framework, so it doesn't provide a universal timetable for every stablecoin sale or exchange withdrawal.How the final rule changes stablecoin redemptionThe adopted text removed a provision that would have automatically extended stablecoin redemption to seven calendar days when demand crossed a specified threshold.Under section 15.12(d) of the OCC rule published in the Oct. 23 Federal Register, an issuer receiving stablecoin redemption requests above 10% of any brand’s outstanding issuance value in a single 24-hour period must notify its OCC supe...