Regulators race to finish stablecoin rules under the GENIUS Act

Federal regulators are in the last stretch of writing the GENIUS Act stablecoin rules, the detailed regulations that will put the 2025 law into practice. The Office of the Comptroller of the Currency says it wants a final rule out by November, and the Treasury Department is taking public comments on its own share of the work until October 19, 2026. For anyone who holds dollar tokens, or any company that wants to issue them, the next few months decide what the first federal stablecoin regime actually looks like.

The timeline

President Trump signed the GENIUS Act in July 2025. It was the first federal framework written specifically for payment stablecoins, but like most financial laws it left the details to the agencies. Those details carry a deadline. The law takes effect on January 18, 2027, or 120 days after regulators issue final rules, whichever comes first, PYMNTS reported.

That structure cuts both ways. Finish early and the clock starts early. Run late and the January date arrives anyway, possibly before the rulebook is complete.

Comptroller of the Currency Jonathan Gould has made clear he does not want to be the one holding things up. Speaking in August at the Wyoming Blockchain Symposium, he said, "We are very intent on moving quickly and getting a final rule out by November so that we will be able to start processing applications within the new year," according to Decrypt. PYMNTS quoted him describing the moment as "the birth of a new industry in the form of payment stablecoins."

How the OCC got here

The OCC published a 376 page proposal in February. Decrypt reported that the public comment period on that proposal closed in May, and that the agency missed an earlier deadline in July. PYMNTS reported that the OCC followed up in June with a second proposal focused on Bank Secrecy Act compliance, the anti money laundering side of the rules.

According to Decrypt, the February proposal covers the core mechanics of running a stablecoin issuer:

• What assets can sit in reserve behind the tokens.
• Redemption at par, meaning a holder can turn one token back into one dollar.
• Liquidity standards and risk management.
• Audits, custody and ongoing supervision.
• How a failed issuer is wound down.
• Anti money laundering and sanctions controls, coordinated with Treasury.

Treasury's piece

Treasury is writing a separate set of rules. Paul Hastings, the law firm, noted in its crypto policy tracker that Treasury's proposal implements Section 3 of the law, which governs who may issue, offer or sell payment stablecoins in the United States. The proposal was published in the Federal Register in August, and comments are due October 19. Decrypt reported that Treasury's proposal would bar platforms from selling noncompliant stablecoins to US customers, which matters as much to exchanges as it does to issuers.

What the GENIUS Act stablecoin rules require

The law applies to payment stablecoins, which are crypto tokens designed to hold a steady value, usually one US dollar. If you want a refresher on how these tokens work in the first place, our guide to stablecoins in plain English covers the basics. In broad terms, the GENIUS Act requires issuers to:

• Back each token with safe, liquid assets such as cash and short term Treasury bills.
• Publish regular reports on those reserves.
• Get licensed and supervised by federal or qualifying state regulators.

Decrypt reported that under the law, only permitted issuers may offer payment stablecoins to Americans. That is the heart of the change: a bright line around who is allowed to sell dollar tokens into the US market.

The state track

The law does not hand everything to Washington. Paul Hastings noted that the GENIUS Act includes a dual track that lets smaller issuers, those with under $10 billion in outstanding stablecoins, opt into state regulation instead. Several states have already moved. The firm's tracker lists Alabama, Delaware, Florida and Georgia as having enacted frameworks meant to line up with the federal law. Florida's rules took effect on October 1, 2026, while Georgia's are tied to the same January 18, 2027 trigger as the federal law.

For issuers, that creates a real choice about which regulator to answer to. For consumers, it means "regulated" will not always mean the same agency is watching.

Who this affects

The most obvious group is the companies that issue stablecoins or want to. They need a license, a reserve setup that meets the final rules and the reporting machinery to prove it. Banks are a second group. PYMNTS reported that the OCC has received 40 applications for new bank charters over the past 18 months, and 23 of them include digital asset activities. Gould described that trend by saying it "tells you about where the puck is going."

Exchanges and wallet apps are the third group. If Treasury's proposal holds, a platform that lists a stablecoin will have to care whether that token comes from a permitted issuer. That could change which tokens US customers see in their apps.

The last group is ordinary users, and that is where the practical questions sit.

Why it matters for you

If you hold or use stablecoins such as USDC or USDT, the new rules are meant to make it clearer what backs your tokens and who supervises the company behind them. They do not make stablecoins the same as a bank deposit, and they do not remove the risk of using an unregulated platform.

A few habits make sense now, before anything is final:

1. Check which company issues the stablecoin you use. The issuer, not the exchange, is the one that holds the reserves.
2. Find where that issuer publishes its reserve reports and read the most recent one.
3. Know where your tokens are actually held. If they sit on an exchange, the exchange's own safeguards matter. Our explainer on how crypto wallets work walks through the difference between exchange accounts and wallets you control.
4. Be wary of anyone who cites the new law as a reason to trust an unfamiliar token or platform. "Federally regulated" is exactly the kind of phrase scammers borrow, and our guide to spotting a crypto scam explains the scripts they use.

What to watch next

Several open questions will shape how this lands:

• Does the OCC hit November? Gould has staked out the date publicly. A final rule on time would let the agency start processing applications early in 2027, as he said it plans to.
• How much changes from the proposal? Final rules often shift after comments. Watch the reserve asset list and the redemption requirements most closely, since those determine how safe the tokens are in practice.
• What Treasury does after October 19. Its rule decides who can sell stablecoins to Americans, which could reshape what exchanges offer.
• Whether the 120 day clock starts before January. If final rules arrive early enough, the law could take effect ahead of the statutory date.

For ongoing coverage of these rules and the companies affected, follow our crypto coverage.

Frequently asked questions

When does the GENIUS Act take effect?

On January 18, 2027, or 120 days after regulators issue final rules, whichever comes first, according to PYMNTS. Until then, the detailed requirements are still being written.

Does the GENIUS Act make stablecoins as safe as a bank account?

No. The law sets standards for reserves, disclosures and licensing, but stablecoins are not bank deposits. They do not carry the protections that come with an insured account, and the platform you use to hold them can still fail.

Can I comment on the rules?

Treasury is accepting public comments on its proposal through October 19, 2026. The comment period on the OCC's February proposal closed in May, Decrypt reported.

Will my current stablecoin still be available?

That depends on whether its issuer becomes a permitted issuer under the final rules. Treasury's proposal would stop platforms from selling noncompliant stablecoins to US customers, so it is worth watching what your exchange says about the tokens it lists.