OCC drops seven day stablecoin redemption extension in final rule

The Office of the Comptroller of the Currency issued its final GENIUS Act rule for national bank stablecoin issuers on October 21, CryptoSlate reported. The regulation removes a previously proposed automatic seven day extension for stablecoin redemptions. It establishes that covered issuers must complete redemptions within an ordinary limit of two business days. [1]

According to CryptoSlate, the new rule defines timely issuer redemption separately from external bank cash availability. An issuer meets its legal payment obligation at the moment it initiates the payment or requests credit to the issuer. Consequently, a stablecoin issuer can satisfy its regulatory deadline before an outside bank makes the fiat currency funds available to the end user. [1]

The final rule applies directly to national banks and federal savings associations that issue payment stablecoins under federal supervision. The regulatory updates aim to clarify operational expectations for covered financial institutions while standardizing redemption protocols across the banking system. [1]

The Office of the Comptroller of the Currency confirmed that the final rule will take effect on January 18, 2027, CryptoSlate reported. Covered banking institutions must align their operational frameworks and redemption mechanisms with the two business day mandate prior to the implementation date. [1]