Table of Contents
Last updated: 26 October 2026. Not legal advice.
The GENIUS Act is the US federal law for payment stablecoins, signed on 18 July 2025 as Public Law 119-27. It takes effect on 18 January 2027, according to OCC Bulletin 2026-50. It covers anyone who issues a dollar stablecoin used for payments in the United States, and from July 2028 any platform that offers one to US users.
Key Takeaways
- The GENIUS Act is the first US federal law for payment stablecoins, signed on 18 July 2025 as Public Law 119-27.
- It takes effect on 18 January 2027; from then, only a permitted payment stablecoin issuer may issue a payment stablecoin in the US (OCC Bulletin 2026-50; Section 3).
- Issuers must back coins at least 1 to 1 with cash, insured deposits, Treasury bills of 93 days or less and similar assets, and may not pay holders interest or yield solely for holding (Public Law 119-27).
- The OCC issued the first final rule on 21 October 2026 (91 FR 67000, 23 Oct 2026), with a 5% demand-deposit liquidity floor, a $5 million capital floor for new issuers and no rebuttable presumption on partner rewards.
- From 18 July 2028, US platforms may only offer payment stablecoins from permitted issuers, with a conditional route for foreign issuers (Section 3(b)).
GENIUS Act at a Glance
| Item | Detail | Source, date |
|---|---|---|
| Full name | Guiding and Establishing National Innovation for U.S. Stablecoins Act | Public Law 119-27 |
| Signed | 18 July 2025 | Public Law 119-27 (S. 1582) |
| Effective date | 18 January 2027 (18 months after enactment, Section 20) | OCC Bulletin 2026-50, 21 Oct 2026 |
| Platform deadline | 18 July 2028 (3 years after enactment, Section 3(b)) | Public Law 119-27 |
| First final rule | OCC, issued 21 Oct 2026, 91 FR 67000 | Federal Register, 23 Oct 2026 |
| OCC liquidity floor | At least 5% of reserves in demand deposits or Fed balances (Option B proposal was 10%) | 91 FR 67000 |
| OCC capital | $5 million floor for de novo issuers, plus an operational backstop of 12 months of total expenses | 91 FR 67000 |
| Entities the OCC expects to affect | 39 | 91 FR 67000, regulatory analysis |
| OCC application form comments | Close 23 Nov 2026 | Federal Register, 23 Oct 2026 |
What Counts as a Payment Stablecoin
Section 2(22) of the Act defines a payment stablecoin as a digital asset that is, or is designed to be, used as a means of payment or settlement, where the issuer is obligated to convert, redeem or repurchase it for a fixed amount of monetary value and represents that it will keep a stable value.
The same section excludes national currencies, bank deposits (including deposits recorded on a blockchain, so tokenized deposits are out) and securities. Synthetic dollars such as USDe are not redeemable by an obligated issuer for a fixed amount; see our USDe guide. How each product is classified is a legal question, not something this page decides.
Who Can Issue: Federal and State Paths
Only a permitted payment stablecoin issuer may issue in the US (Section 3). There are three paths: a subsidiary of an insured depository institution, a federal qualified issuer approved by the OCC, or a state qualified issuer approved by a state regulator.
A state issuer with no more than $10 billion in consolidated outstanding issuance may opt for a state regime that is substantially similar to the federal one (Section 4(c)). Above $10 billion it has 360 days to move to the federal framework or must stop issuing new coins, unless the federal regulator grants a waiver. Treasury proposed the principles for judging "substantially similar" on 3 April 2026 and issued interim review procedures on 30 September 2026.
Reserve, Redemption and Disclosure Rules
Reserves must back outstanding coins on at least a 1 to 1 basis (Section 4(a)). Permitted assets are US coins and currency, Federal Reserve balances, demand deposits at insured institutions, Treasury bills, notes or bonds with 93 days or less to maturity, overnight repos and reverse repos backed by Treasuries, government money market funds holding those assets, other similarly liquid federal assets a regulator approves, and tokenized versions of those reserves.
Issuers must publish a redemption policy and all fees, with at least 7 days' notice before a fee change, and post the monthly composition of reserves on their website (Section 4(a)). Reserves may not be rehypothecated except in narrow cases.
The Yield Ban and the Rewards Question
Section 4(a)(11) of the Act bars a permitted issuer from paying holders any form of interest or yield, in cash, tokens or other consideration, solely in connection with holding, using or retaining the coin.
The OCC's proposal had a rebuttable presumption that certain payments through affiliates and related third parties broke the ban. The final rule eliminated that presumption after comments split on it. Exchange and partner reward programs are covered in our stablecoin yield rules guide and the OCC final rule analysis.
Key Dates Timeline
| Date | Event | Source |
|---|---|---|
| 18 Jul 2025 | GENIUS Act signed (Public Law 119-27) | GovInfo |
| 2 Mar 2026 | OCC proposed rule published (proposed 25 Feb 2026) | OCC Bulletin 2026-50 |
| 3 Apr 2026 | Treasury proposes state-regime principles (Section 4(c)) | Federal Register |
| 10 Apr 2026 | FDIC proposed rule published (comments closed 9 Jun 2026) | Federal Register |
| 18 Aug 2026 | Treasury proposes Section 3 issuance, offer and sale rules (comments closed 19 Oct 2026) | Federal Register |
| 24 Sep 2026 | Federal Reserve proposals announced (published 29 Sep; comments to 30 Nov 2026) | Federal Reserve, Federal Register |
| 21 Oct 2026 | OCC final rule issued | OCC NR 2026-92 |
| 23 Oct 2026 | OCC final rule printed (91 FR 67000) | Federal Register |
| 23 Nov 2026 | Comments close on OCC application forms | Federal Register |
| 18 Jan 2027 | Act and OCC rule take effect | OCC Bulletin 2026-50 |
| 18 Jul 2028 | Platforms may only offer permitted payment stablecoins | Section 3(b) |
Where Rulemaking Stands
The OCC rule is final (91 FR 67000). The Federal Reserve proposals are open for comment until 30 November 2026 (Federal Register); see our Fed proposals breakdown. The FDIC proposal closed for comment on 9 June 2026, and Treasury's Section 3 proposal closed on 19 October 2026. For live status across agencies, use the stablecoin regulation tracker.
What It Means for USDT, USDC and Other Big Stablecoins
USDT: holding it is not banned, but from 18 July 2028 US platforms may only offer it if Tether qualifies as a permitted issuer or meets the foreign-issuer conditions in Section 3(b). Our 2028 deadline explainer covers the options, including the US-focused USAT.
USDC, PYUSD, USDG and RLUSD issuers will need a permitted-issuer license once the Act applies. Readiness by coin is tracked in our GENIUS-compliant stablecoins guide, and Ripple's path is in What Is RLUSD?.
GENIUS Act vs MiCA
| GENIUS Act (US) | MiCA (EU) | |
|---|---|---|
| Scope | Payment stablecoins | Crypto-assets, including e-money tokens and asset-referenced tokens |
| Issuer license | Federal or state permitted issuer | Authorised credit institution or e-money institution for EMTs |
| Yield | Issuer may not pay interest for holding | Issuers may not grant interest on EMTs |
| In force | 18 Jan 2027 | Stablecoin titles applied from 30 June 2024 (Regulation (EU) 2023/1114) |
Token categories under the EU rules are in our MiCA stablecoin categories guide.
GENIUS Act vs CLARITY Act
GENIUS is enacted law for payment stablecoins. CLARITY is the separate market structure bill for other crypto assets, still pending in Congress; see our CLARITY Act rewards vote coverage.
FAQ
What is the GENIUS Act?
The US federal law for payment stablecoins, signed 18 July 2025 as Public Law 119-27.
When does the GENIUS Act take effect?
On 18 January 2027 (OCC Bulletin 2026-50). Section 20 sets the earlier of 18 months after enactment or 120 days after final regulations.
Does the GENIUS Act ban stablecoin yield?
It bans issuers from paying interest or yield solely for holding, using or retaining the coin (Section 4(a)(11)). The OCC's final rule dropped the proposed presumption against affiliate and third-party payments.
Is USDT legal under the GENIUS Act?
Holding is not banned. From 18 July 2028, US platforms may only offer stablecoins from permitted issuers or qualifying foreign issuers (Section 3(b)). See the 2028 explainer.
Which stablecoins are GENIUS compliant?
None is licensed under the Act yet, because it does not apply until 18 January 2027 (OCC Bulletin 2026-50). See our readiness guide.
Who regulates stablecoin issuers under the Act?
The OCC, Federal Reserve, FDIC and NCUA on the federal side, and state regulators for state issuers with no more than $10 billion outstanding (Section 4(c)).
What did the OCC final rule change?
It set a 5% demand-deposit liquidity floor, a $5 million capital floor for new issuers plus a 12-month expense backstop, and removed the rebuttable presumption on partner rewards (91 FR 67000, 23 Oct 2026).
How is the GENIUS Act different from MiCA?
GENIUS covers US payment stablecoins and applies from 2027; MiCA is the EU regime, whose stablecoin rules applied from 30 June 2024 (Regulation (EU) 2023/1114).
