The US Office of the Comptroller of the Currency (OCC) announced in October that the GENIUS Act, the federal stablecoin regulation law, will take effect on January 18, 2027. The implementation follows the law's enactment in July 2025 and establishes requirements for payment stablecoin issuers to obtain federal or state regulatory approval. Gary Dwaul, former attorney at Katten Muchin Rosenman, stated on November 28 (local time) that congressional oversight of issuer licensing, exemption applications, and subsequent rulemaking could intensify depending on midterm election results on November 3 (local time), though the enacted law itself would not be repealed. The regulatory framework addresses reserve assets, redemption procedures, and risk management, while anti-money laundering provisions remain under separate Treasury Department coordination.
OCC Publishes Final Rules with Separate Anti-Money Laundering Procedures
The GENIUS Act, enacted in July 2025, regulates payment stablecoins in the United States. The OCC's final rules published in October cover reserve assets, redemption, risk management, auditing and reporting, custody, and capital and operational safeguards. The rules apply to bank affiliates, non-bank issuers seeking federal banking licenses, and foreign issuers.
Anti-money laundering regulations remain under separate procedures. The OCC stated it will address Bank Secrecy Act (BSA), anti-money laundering (AML), and Office of Foreign Assets Control (OFAC) sanctions compliance in separate rules developed in cooperation with the Treasury Department. Issuers must present compliance frameworks for anti-money laundering, sanctions adherence, third-party risk management, and audit systems during the licensing application stage. Application materials include business plans, reserve assets, issuance and redemption procedures, and explanations of anti-money laundering and sanctions compliance.
Existing Issuers Must Obtain Approval with Temporary Exemption Option
The OCC stated in its application guidance published on the same day that prior approval requirements apply to issuers currently operating in the United States. Existing operators cannot issue payment stablecoins without separate approval. Entities subject to pending legal proceedings after the law takes effect may apply for temporary exemptions from certain requirements. The exemption period is legally capped at 12 months from the implementation date.
The OCC announced on November 21 that it will begin accepting applications after receiving final approval from the White House Office of Management and Budget (OMB) for information collection related to application forms. The agency will issue separate press releases announcing the start of application and exemption request acceptance. The OCC is also refining reporting systems, having released draft amendments to weekly and quarterly reporting forms for issuers and requested additional comments. These forms will be used to supervise issuer regulatory compliance and financial conditions.
Democratic House Control Could Strengthen Regulatory Oversight
Post-election changes divide into law continuity and implementation processes. If the Democratic Party retakes the House, it could review regulatory agency enforcement through committees such as the House Financial Services Committee. For the GENIUS Act, licensing reviews, exemption applications, and supervision of reserve assets and redemptions could become review subjects. Reuters reported in October that if the Democratic Party controls either chamber of Congress, it could strengthen investigations into financial regulators and digital asset companies.
If the Democratic Party controls both chambers, it could lead the review and processing of amendments. However, if President Donald Trump exercises veto power, overriding it requires a two-thirds majority vote in each chamber. Repealing the law or delaying implementation cannot be finalized with a simple majority alone. If the Republican Party maintains Senate control, House-led amendments by Democrats would require Senate agreement. Meanwhile, rule enforcement under current law and individual operator reviews remain under executive branch authority.
Foreign issuer requirements for US market access will be specified during the implementation process. The OCC's final rules include provisions on foreign issuer registration, inspection, and supervision. Korean companies considering US market entry or dollar stablecoin operations may be subject to related requirements depending on their business structure. The OCC stated it will revise the final rules to reflect any newly enacted related legislation.
FAQ
What is the implementation date for the GENIUS Act?
The OCC announced in October that the GENIUS Act will take effect on January 18, 2027. The law was enacted in July 2025 and establishes federal regulatory requirements for payment stablecoin issuers in the United States.
Do existing stablecoin issuers need new approval under the GENIUS Act?
Yes. The OCC stated in its application guidance that prior approval requirements apply to issuers currently operating in the United States. Existing operators cannot continue issuing payment stablecoins without obtaining separate regulatory approval, though they may apply for temporary exemptions from certain requirements for up to 12 months from the implementation date.
