The Office of the Comptroller of the Currency has finalized its rule implementing the GENIUS Act, the first regulator to do so. The final text drops a proposed presumption against certain third-party yield arrangements but keeps the ban on issuers paying interest directly.
The Office of the Comptroller of the Currency is the first regulator to finalize its GENIUS Act rule for stablecoin issuers. The banking regulator said the rule takes effect on Jan. 18, 2027.
Comptroller Jonathan Gould said in a statement that the OCC is providing "a clear, practical framework for payment stablecoin innovation", according to The Block.
Third-party yield presumption dropped
The final rule diverges from the OCC's proposal in how it treats stablecoin rewards, which let users earn interest on deposited funds. The proposal created a presumption that certain arrangements could be unlawful when issuers had certain business relationships with third parties.
A regulatory official told reporters the final rule omits that presumption because the proposed language estimated whether evasion would be likely, rather than reflecting an understanding that a nascent market existed.
Dropping it does not exempt rewards programs, however. The OCC said an issuer cannot evade the ban by paying another entity to make a prohibited payment on its behalf. It also declined to grandfather rewards programs that predate the law or to provide a general safe harbor.
What issuers face from January
Under the OCC's guidance, issuing payment stablecoins in the United States generally requires approval beginning Jan. 18, 2027. Existing issuers receive no automatic transition period. Those with substantially complete applications pending by that date may request waivers for up to 12 months.
The agency says it will notify applicants within 30 days whether an application is substantially complete, and act no later than 120 days after that determination. Applications will open after the Office of Management and Budget approves the related information collection.
The rule also establishes standards for stablecoin issuers outside the U.S. and sets standards for custodying assets.
Sources: The Block, The Defiant
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