The U.S. Office of the Comptroller of the Currency finalized rules implementing the GENIUS Act, establishing federal standards for payment stablecoin issuers under its jurisdiction. Announced Oct. 21, the rule takes effect Jan. 18, 2027, and covers reserve backing, redemptions, risk management and certain services that hold digital assets for customers. It applies to permitted payment stablecoin issuers and foreign issuers within the OCC’s jurisdiction. The rule bars stablecoin issuers from paying holders interest or yield directly. It does not categorically prohibit rewards offered through third parties: the OCC will assess those arrangements case by case, considering whether payments are tied solely to holding, using or retaining a payment stablecoin. Some transaction-based payments are not prohibited if they do not amount to interest or yield, or are not made solely in connection with holding, using or retaining a stablecoin. The OCC received comments from crypto companies, community bankers, trade groups and academics. Finalizing the rule does not approve any issuer: the agency will separately announce when it begins accepting and processing applications and requests for exceptions. Requirements covering the Bank Secrecy Act, anti-money laundering and sanctions will be developed separately with the Treasury Department. The OCC said it will monitor the industry and adjust the framework where necessary. The yield question has been contested by banks and crypto firms. Earlier versions of the Clarity Act prompted debate over whether crypto companies should be barred from offering rewards economically or functionally equivalent to deposit interest. The Senate Banking Committee approved the legislation in May, but it ultimately failed amid concerns about potential conflicts of interest. President Donald Trump reported $1.4 billion in income from his family's crypto businesses in 2025, and Democrats pushed for stronger restrictions on government officials profiting from crypto rules. The Independent Community Bankers of America warned that stablecoin adoption could reduce community-bank lending by at least $850 billion in the coming years, citing analysis. Treasury Secretary Scott Bessent called the rule a watershed moment and said it further cemented the United States as the crypto capital of the world. Comptroller of the Currency Jonathan Gould said the OCC was providing a practical framework with standards for reserve backing, redemption and risk management. The existing framework retains one-to-one reserve backing, liquidity, counterparty-exposure and stress-testing requirements, while giving issuers greater flexibility over reserve management. It removes a proposed limit on longer-dated Treasurys, allows bank deposits to qualify as reserve assets, and relaxes proposed restrictions on reserve withdrawals and concentrations with individual counterparties. Issuers must notify the OCC within 24 hours when redemption requests exceed 10% of a stablecoin's outstanding value. The OCC also revised weekly and quarterly reporting forms, subject to approval by the U.S. Office of Management and Budget. Circle shares rose 6.72% to $91.79 at publication as Bitcoin gained 2.03% to $84,618.75; Needham analyst John Todaro raised Circle's price target to $134 from $130.