The US Treasury Department has taken a significant step in regulating the cryptocurrency market. Treasury Secretary Scott Bessent announced that the Office of the Comptroller of the Currency (OCC) has issued a final rule for stablecoin regulation.
What happened
The final rule is part of the GENIUS Act, which was signed into law by President Trump in July 2025. The rule sets requirements for both domestic and foreign stablecoin issuers, as well as certain custody activities by banks. According to the OCC, the rule provides a clear and practical framework for payment stablecoin innovation, with strong standards for reserve backing, redemption, and risk management.
The GENIUS Act requires stablecoin issuers to retain 100% reserve backing using liquid assets, such as short-term US Treasuries. The law aims to make the US a leader in digital assets, prioritize consumer protection, and strengthen the US dollar's reserve currency status.
The final rule has been compared to President Abraham Lincoln's National Currency Act of 1863, which established a national banking system and standardized the national fiat currency. The rule is set to take effect on January 18, 2027.
