Scott Bessent Calls GENIUS Act a ‘Watershed Moment’ as OCC Sets Stablecoin Rules

Source: CryptoPotato2026/10/25 03:21
Analysis
The OCC's final rule converts the GENIUS Act from statute into an operational supervisory framework, defining reserve backing, redemption rights, risk management, and custody standards for permitted payment stablecoin issuers, including foreign issuers under its jurisdiction. The immediate gap is procedural: the agency has not said when it will accept applications or waiver requests, so the practical licensing path remains undefined even as the substantive standards are now fixed. Notably, Bank Secrecy Act, AML, and OFAC sanctions provisions are carved out for a separate rulemaking with Treasury, meaning compliance obligations will arrive in stages rather than as a single package. Watch for the application-opening announcement, the Treasury-coordinated AML rule, and how the Federal Reserve's September proposals for issuers and supervised banks are harmonized before the January 18, 2027 effective date.

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The US Office of the Comptroller of the Currency (OCC) has finalized its rules for implementing the GENIUS Act. The rule covers requirements for permitted payment stablecoin issuers, foreign issuers under the OCC’s jurisdiction, as well as certain custody activities handled by entities supervised by the agency.

Reserve backing, redemption, and risk management are among the areas covered by the new framework.

OCC Locks In Stablecoin Rules

US Treasury Secretary Scott Bessent called the GENIUS Act a “watershed moment in American finance.” He added,

“Just as President Abraham Lincoln’s National Currency Act of 1863 established a national framework for bank-issued currency, the GENIUS Act establishes a federal framework for payment stablecoins in the digital age. The OCC’s final rule carries that landmark legislation forward, providing a clear, practical foundation for private-sector innovation, competition, and American leadership in digital assets.”

The OCC received hundreds of comments on its proposal from crypto companies, community banks, trade groups, academics, and other stakeholders. The final rule addresses the regulations required under the GENIUS Act, apart from provisions covering the Bank Secrecy Act, anti-money laundering, and sanctions enforced by the Office of Foreign Assets Control.

Those areas will be handled through a separate rulemaking process in coordination with the Treasury Department. The OCC will also continue working with other agencies involved in implementing the law.

The agency has not yet announced when it will start accepting applications and waiver requests from prospective permitted payment stablecoin issuers. It said that announcement will come separately. The OCC also plans to monitor the industry as it develops and make adjustments to its supervisory approach if needed. Both the GENIUS Act and the final rule are scheduled to take effect on January 18, 2027.

Fed Proposals

The Guiding and Establishing National Innovation for US Stablecoins, a.k.a. the GENIUS Act, was signed into law back in July 2025. The federal regulators missed the July 18, 2026, deadline to finalize the stablecoin rules, as it required multiple agencies to build an entirely new supervisory framework.

In September, the Federal Reserve proposed two rules for stablecoin issuers and banks under its supervision.

The post Scott Bessent Calls GENIUS Act a ‘Watershed Moment’ as OCC Sets Stablecoin Rules appeared first on CryptoPotato.

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