GENIUS Act stablecoin rule waits on OCC as comment window closes

What happened

Treasury's proposed rule for payment stablecoin issuance, offer and sale closed its public comment window on October 19, 2026. The proposal asked the industry 87 questions on issuer licensing, foreign stablecoin access, reserve composition and exchange due diligence. It sets up a new regulatory code under 12 CFR Part 1523 and implements Section 3 of the GENIUS Act, which governs who may issue, offer or sell payment stablecoins in the United States.

The Blockchain Association filed a 26-page comment letter on October 19. The group supports Treasury's plan to regulate payment stablecoin issuance but wants clearer definitions of digital asset service providers and limits on liability for unlawful issuance. It also argues that foreign stablecoin checks should rely on official regulatory records rather than extensive investigations.

President Trump signed the GENIUS Act on July 18, 2025. The law required regulators to finalize implementing rules by July 18, 2026, about 12 months after enactment. That deadline passed with no final rules from Treasury, the OCC, the FDIC or the Federal Reserve.

Why it matters

The statutory effective date is the earlier of January 18, 2027, or 120 days after primary federal regulators issue final rules. Because the July 2026 rulemaking deadline was missed, the January 18, 2027 backstop is now the operative date. As of the comment deadline, the OCC had not published a final rule, so the 120-day clock had not started.

The Comptroller of the Currency said publicly on August 19, 2026, that the OCC expects to publish its final stablecoin rule by November 2026. If that timeline holds, the 120-day clock starts in November and the effective date moves to roughly March 2027, after the January 18 backstop.

The $10 billion market cap threshold is a structural cut point. Issuers below it may operate under qualifying state regimes. Issuers above it must move to the federal OCC regime within 360 days of the effective date or request a formal exemption. USDT, at approximately $180 billion in global market cap, and USDC, at approximately $72 billion, are both above the threshold.

Section 3(b)(2) of the GENIUS Act bars offering, selling or making a foreign-issued stablecoin available to US persons unless the issuer can and will comply with lawful orders. That provision takes effect January 18, 2027, and the burden falls on digital asset service providers, exchanges, platforms and on-ramps rather than the issuer directly.

What is still unclear

• Treasury's proposal asked 87 questions, which the report says indicates structural choices were made without settling all operational details.
• The Blockchain Association questions whether some compliance requirements could reach businesses and blockchain participants that do not directly deal with stablecoin issuers or customers.
• Treasury's August proposed rule already recognizes statutory exemptions for certain direct transfers between individuals and transactions using self-custody wallets, the dispute is how those exclusions apply when businesses interact with decentralized systems.

Questions readers ask