OCC Relaxes Reserve And Yield Rules In Final GENIUS Act

Update (Oct 21, 16:55 UTC): Federal bank regulators have published the implementation rules under the GENIUS Act, confirming that crypto exchanges can pass along earnings from stablecoin reserves to customers on a case-by-case basis.

Update (Oct 21, 15:25 UTC): According to Ledger Insights, the final GENIUS Act regulations include relaxed rules regarding reserves and yields for stablecoins.

The Office of the Comptroller of the Currency (OCC) has finalized federal regulations implementing the GENIUS Act, establishing a framework for stablecoin issuance, reserve backing, redemptions, and supervision. According to CryptoNews, the new rules are scheduled to take effect on January 18, 2027.

The final regulations cover permitted payment stablecoin issuers operating under OCC jurisdiction, certain foreign issuers, and crypto custody activities carried out by federally supervised financial institutions. Treasury Secretary Scott Bessent welcomed the decision, comparing the legislation to the National Currency Act of 1863.

Licensing and Compliance Requirements

Companies seeking federal approval must provide detailed information regarding their operations, management, reserves, liquidity, and financial controls. The OCC has proposed weekly reporting on stablecoin activity and reserves, alongside quarterly financial reports beginning March 31, 2027. Anti-money laundering controls and Bank Secrecy Act requirements are being handled through a separate rulemaking process.

Existing issuers with pending applications submitted by the deadline may request temporary compliance waivers lasting up to 12 months if approval is not granted before January 18. Issuing payment stablecoins without the required authorization will carry criminal penalties once the framework takes effect.

Key facts

• The OCC finalized GENIUS Act regulations on October 21, with an effective date of January 18, 2027.
• The rules cover reserve standards, redemption procedures, risk controls, and weekly and quarterly reporting.
• Eligible existing issuers with pending applications may apply for temporary compliance waivers of up to 12 months.
• Anti-money laundering and OFAC sanctions rules are managed through a separate regulatory process.