OCC Aims for November Completion of GENIUS Act Regulations

OCC Aims for November Completion of GENIUS Act Regulations

The Office of the Comptroller of the Currency (OCC) has established a target for completing its regulations under the GENIUS Act by November 2026. This timeline follows extensive industry feedback concerning the proposed framework for stablecoins, which addresses vital areas such as reserves, redemptions, supervision, custody, and issuer applications.

Feedback-Driven Adjustments

During the Wyoming Blockchain Symposium held on August 19, Comptroller of the Currency Jonathan Gould indicated that the OCC is open to modifying the proposed rules based on input received from cryptocurrency entities and other stakeholders. However, it remains unclear whether all regulations under the GENIUS Act will be finalized by the stated deadline.

Increased Activity in Digital Assets

Gould highlighted a significant uptick in digital asset approval activities, noting an eightfold increase since the Biden administration began. This dramatic rise underscores the urgency of the regulatory framework being established for stablecoins.

Regulatory Framework and Requirements

The draft regulations, initially proposed on February 25 and published in the Federal Register on March 2, outline the lifecycle of payment stablecoins. Key components include:

• Issuer requirements for maintaining eligible reserve assets.
• Mandatory redemption of stablecoins at par.
• Protocols for liquidity, risk controls, audits, and custody.
• Application processes for nonbank companies wishing to qualify as federal payment stablecoin issuers.

The OCC also plans to impose a capital and operational backstop for issuers, which could see amendments based on the public’s comments.

Pushed Timelines and Pending Deadlines

The initial mandate to implement these regulations was set for one year following the GENIUS Act’s enactment on July 18, 2025; however, the deadline was missed, and as of July 18, 2026, the necessary rules from the OCC and other federal agencies were still not complete.

Should the OCC finalize its proposal by November, the effective date for the payment stablecoin framework will be January 18, 2027 – or 120 days following the issuance of corresponding rules by primary federal regulators.

Treasury’s Complementary Proposals

In a related move, the Treasury Department has proposed its own set of guidelines regarding when payment stablecoins can be legally issued, offered, or sold in the U.S. These proposed regulations emphasize requirements that determine when federal or state licensing is necessary for stablecoin issuers.

Growing Interest in Digital Asset Banking

The OCC’s push for a regulatory framework coincides with increasing interest from companies seeking to provide digital asset services under federal banking supervision. In the past 18 months, the OCC has reportedly received 40 new bank applications, a stark contrast to previous years.

As the agency processes these applications – including several conditional approvals – companies like World Liberty Financial aim to establish national trust banks focused on issuing stablecoins and providing custody services.