Banking and Finance Law Daily Wrap Up, FINANCIAL TECHNOLOGY—OCC finalizes GENIUS Act payment stablecoin rule for 2027, (Oct 21, 2026)

By Kathleen Bianco, J.D.

Application intake remains contingent on Office of Management and Budget approval, while the final rule and the GENIUS Act take effect January 18, 2027.

The Office of the Comptroller of the Currency (OCC) finalized regulations implementing the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act for permitted payment stablecoin issuers and foreign payment stablecoin issuers under its jurisdiction, along with certain custody activities by OCC-supervised entities. The final rule and the Act take effect January 18, 2027. Most regulations appear in new 12 CFR part 15, which covers reserve assets, redemption, risk management, supervision, custody, applications, and capital and operational backstops. Companion guidance explains application and waiver processes, while revised weekly and quarterly reporting forms remain subject to public comment and Office of Management and Budget (OMB) approval.

Rule and scope. The final rule applies to national banks and their subsidiaries; federal savings associations and their subsidiaries; federal branches and their subsidiaries; foreign payment stablecoin issuers; nonbank entities seeking or holding approval as federal qualified payment stablecoin issuers; and state qualified payment stablecoin issuers over which the OCC has regulatory or enforcement authority under the Act. The custody provisions cover certain activities conducted by OCC-supervised entities.

The rule addresses the regulations the OCC is required to issue under the Act except those concerning the Bank Secrecy Act, anti-money laundering, and Office of Foreign Asset Control sanctions. The OCC said those subjects will be covered in a separate rulemaking coordinated with the Department of the Treasury. The agency received hundreds of comments from crypto-focused companies, community bankers, trade groups, academics, and other stakeholders, and said the final rule incorporates or addresses comments on the proposal.

Comptroller of the Currency Jonathan V. Gould described the rule as “a clear, practical framework for payment stablecoin innovation, with strong standards for reserve backing, redemption, and risk management.” Because the industry is emerging, the OCC said it will monitor its evolution and structure and adjust the supervisory and regulatory framework, as necessary.

Applications and waivers. The OCC will begin accepting applications only after OMB gives final approval to the information collection related to the application forms. The agency indicated that it will issue a press release when it begins accepting applications and waiver requests. Section 5(f) permits certain eligible applicants with applications pending on January 18, 2027, to receive waivers for no more than 12 months beginning on that date. The eligible categories are an insured depository institution subsidiary whose parent has a pending application for the subsidiary and an applicant seeking to become a federal qualified payment stablecoin issuer.

For existing issuers currently operating in the United States that submit substantially complete applications before January 18, 2027, the OCC generally expects to grant Prior Approval Requirement waivers unless its review identifies more compelling reasons for denial. Each request will receive an individual merits review, and the agency indicated that it intends to act in a timely manner and generally by January 18, 2027. The waivers are expected to be limited to the time needed to address the reason for granting it. The OCC has not identified generally applicable grounds for waivers for issuers not currently operating or issuing in the United States and expects prospective issuers to begin U.S. operations only after approval.

Applicants will be notified within 30 days after an application has been received by OCC whether the application is substantially complete. If the applicant submits requested missing information, the agency will review it and respond within 30 days. The OCC will return an application that remains incomplete within 60 days of the initial notice. Once an application is deemed substantially complete, the OCC will issue a decision no later than 120 days after that determination.

Reporting forms. The OCC also published revised weekly and quarterly reporting forms for public comment as part of a new information collection. The forms apply to permitted payment stablecoin issuers and foreign payment stablecoin issuers for which the OCC has authority under the Act. Comments will be accepted for 30 days after the information collection is published in the Federal Register.

The OCC revised the forms in response to comments on its June 2026 proposal (see Banking and Finance Law Daily, Jun. 11, 2026) and to conform them to changes in the final rule. Pending OMB approval, the information collection would take effect on January 25, 2027, for the weekly form and on March 31, 2027, for the quarterly form.

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