WASHINGTON — The United States has finalized a federal regulatory framework for dollar-backed digital tokens, establishing new standards for financial reserves, consumer redemptions, risk management and regulatory oversight as the Trump administration moves to expand America’s role in the digital asset industry.
The Office of the Comptroller of the Currency (OCC) announced Wednesday that it had adopted final regulations implementing the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. The new rules are scheduled to take effect January 18, 2027.
The framework establishes federal requirements for companies issuing payment stablecoins, including certain foreign issuers, while also regulating custody services provided by financial institutions under OCC supervision.
Stablecoins are digital assets designed to maintain a consistent value, typically by being tied to the U.S. dollar. Unlike cryptocurrencies such as Bitcoin, which can experience significant price fluctuations, stablecoins are intended to preserve their value through financial reserves and redemption mechanisms.
The new regulations require issuers to maintain qualifying assets to back their outstanding tokens and establish procedures allowing holders to redeem stablecoins. They also introduce standards for capital, operational safeguards, financial reporting, audits and regulatory supervision.
Treasury Secretary Scott Bessent described the regulatory framework as a significant milestone for the American financial system.
“The GENIUS Act marks a watershed moment in American finance, further cementing the United States as the crypto capital of the world,” Bessent said.
He compared the legislation to the National Currency Act of 1863, which created a national framework for bank-issued currency, and said the new regulations would encourage private-sector innovation, competition and American leadership in digital finance.
Comptroller of the Currency Jonathan Gould said the framework was designed to support the development of digital payment technologies while maintaining safeguards for the financial system.
“We are providing a clear, practical framework for payment stablecoin innovation, with strong standards for reserve backing, redemption, and risk management,” Gould said.
The regulations apply to a range of financial institutions and digital asset businesses, including national banks, federal savings associations, their subsidiaries, qualifying nonbank issuers, certain state-regulated entities and eligible foreign stablecoin issuers.
They also establish requirements for institutions holding digital assets on behalf of customers, along with procedures for applications, registrations, ongoing supervision and the potential withdrawal of regulatory approval.
According to the OCC, the final framework incorporates revisions made after the agency reviewed hundreds of public comments from banks, cryptocurrency companies, industry organizations, academics and other interested parties.
However, several aspects of the GENIUS Act remain subject to additional rulemaking.
The OCC said separate regulations addressing Bank Secrecy Act compliance, anti-money laundering safeguards and sanctions administered by the Treasury Department’s Office of Foreign Assets Control would be developed in coordination with Treasury officials.
The agency also introduced revised weekly and quarterly reporting forms intended to help regulators monitor the financial condition of stablecoin issuers, assess reserve holdings and evaluate compliance with federal requirements.
Those reporting measures must still complete the applicable approval process.
The OCC said it would announce separately when it plans to begin accepting and reviewing applications and waiver requests from companies seeking authorization to issue payment stablecoins.
President Donald Trump signed the GENIUS Act into law on July 18, 2025, creating a federal statutory framework for regulating payment stablecoins. The OCC released proposed implementing regulations in February 2026 before adopting the final rules.
The framework represents another step toward integrating dollar-linked digital assets into the broader U.S. financial system, with potential implications for international payments, financial technology companies and cross-border transactions.
As dollar-backed stablecoins gain wider use in digital commerce and financial settlements, the new federal standards could also influence how other countries approach the regulation of digital currencies and blockchain-based payment systems. (Source: IANS)
