OCC issues final rule implementing the GENIUS Act for payment stablecoins
OCC issues final rule on stablecoin framework
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OCC issued a final rule implementing the GENIUS Act for payment stablecoins, applicable to banks and other OCC-regulated entities that hold, issue, and transfer payment stablecoins. The rule will take effect on Jan. 18. The rule prohibits issuers from paying yield directly to stablecoin holders, while third-party arrangements will be evaluated based on the specific facts and circumstances; BSA, AML, and OFAC sanctions requirements will be established separately by OCC and Treasury Department.
The rule clearly prohibits stablecoin issuers from paying yield directly to holders, while third-party reward arrangements will continue to be evaluated on a case-by-case basis, allowing relevant institutions to identify the regulatory boundaries.
Source:Banking Dive · bankingdive.com