OCC Finalizes Stablecoin Rule Implementing GENIUS Act, Effective Jan. 18

The Office of the Comptroller of the Currency issued its final rule Wednesday to implement the GENIUS Act, setting guidance for banks and OCC-regulated entities that hold, issue and move stablecoins. The rule takes effect Jan. 18. The rule bans direct yield payments from stablecoin issuers to customers but leaves third-party reward arrangements to be evaluated case-by-case. It also exempts transaction-based payments that do not amount to interest or yield and are not tied solely to holding a stablecoin. The OCC deferred Bank Secrecy Act, anti-money laundering and OFAC sanctions parameters to a separate rulemaking with the Treasury Department, and said it will later announce when it begins accepting applications and waiver requests. Treasury Secretary Scott Bessent called the rule a "watershed moment in American finance." The Independent Community Bankers of America warned stablecoin adoption could cut community bank lending by at least $850 billion.