US OCC Proposes Rule to Implement GENIUS Act & Prohibits Stablecoin Yield

The U.S. Office of the Comptroller of the Currency (OCC) releases a proposed rulemaking and seeks public comments to implement the GENIUS Act. This marks a major step towards establishing the first regulatory framework for payment stablecoins.

US OCC Issues Proposed Rulemaking for Implementing GENIUS Act

The OCC issued a notice of proposed rulemaking to implement the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act for the issuance of stablecoins and regulate certain activities.

The government agency is seeking public comments over the next 60 days. Notably, the regulatory framework aims to establish ground rules for permitted and foreign payment stablecoin issuers under OCC supervision, along with certain custody and reserve asset activities.

Comptroller Jonathan Gould says the goal is a GENIUS Act system where stablecoins can “flourish in a safe and sound manner.” This would also accelerate nonbank issuance and innovation, while addressing regulatory gaps.

The provisions for the Bank Secrecy Act, anti-money laundering, and Office of Foreign Assets Control sanctions are not included. It will be addressed in a separate rulemaking in coordination with the US Department of the Treasury.

Stablecoins represent a legally permissible new payment tool. The OCC invites comments on a proposed regulatory framework for payment stablecoins pursuant to the GENIUS Act. More info at https://t.co/fbADAxqP2N. pic.twitter.com/gfwt6AtN7u

— OCC (@USOCC) February 25, 2026

The GENIUS Act will take effect within 18 months of the enactment date (July 2025), which is expected in January 2027. Meanwhile, the American Banking Association has asked OCC to delay national bank charter review for Ripple, Coinbase, Circle, and other crypto firms.

Stablecoin Yields Prohibition

The OCC proposes to resolve the debate on stablecoin yield through rulemaking, potentially clearing the way for the CLARITY Act to proceed without that provision. The White House has set a March 1 deadline for banks and the crypto industry to resolve conflicts over stablecoin yield provisions.

The agency proposes a rebuttable presumption that a contract or agreement between an issuer, affiliates, or related third parties to pay yield or interest to stablecoin holders violates the GENIUS Act.

However, issuers may submit written materials to the OCC demonstrating that the arrangement is not prohibited and not an attempt to evade the GENIUS Act.

The proposal makes it clear that the prohibition is not intended to prevent a merchant from offering a discount to a payment stablecoin holder. Also, this applies to issuers from sharing in the profits derived from the stablecoin with a non-affiliate partner in a white-label arrangement.