OCC Finalizes Stablecoin Rules, Moves Third-Party Yield to Case Review

The Office of the Comptroller of the Currency (OCC) finalized rules for payment stablecoins on Oct. 21, shifting third-party yield arrangements to case-by-case supervision and setting a two-business-day redemption standard.

The rules take effect Jan. 18, 2027. They cover qualifying payment stablecoin issuers overseen by the OCC, foreign payment stablecoin issuers and certain custody activities at institutions the agency supervises.

The final rule drops a proposal that would have presumed an issuer violated the ban on paying holders interest or yield if it arranged for an affiliate or third party to make those payments. The OCC will review such arrangements through applications and ongoing supervision and can act if it finds a violation or an effort to evade the ban.

The rule also removes a proposed automatic seven-day extension during redemption surges. Issuers must complete timely redemptions within two business days. If requests exceed 10% of outstanding supply in 24 hours, an issuer must notify the OCC within 24 hours and may request an extension, subject to the agency’s approval.

The OCC will announce separately when it begins accepting issuer applications and exemption requests.