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The Guiding and Establishing National Innovation for US Stablecoins Act (the GENIUS Act) was signed on 18 July 2025. The Office of the Comptroller of the Currency (OCC) issued its final rule on 21 October 2026, and both the Act and the rule take effect on 18 January 2027. From that date only a permitted payment stablecoin issuer may issue a payment stablecoin in the United States, and US exchanges, wallets and brokers, which the Act calls digital asset service providers, face limits on which stablecoins they can offer.
For an issuer outside the US, such as a UK EMI issuing a sterling or dollar token, an EU institution issuing an e-money token under MiCA, or a Hong Kong or Singapore licensed issuer, the question is how its coin stays available to US users. The Act gives two routes, and the choice between them has to be made in the next few months. Our wider guide to GENIUS Act compliance for stablecoin companies covers the domestic rules.
| Date | What happens |
|---|---|
| 18 July 2025 | GENIUS Act signed into law |
| 18 August 2026 | Treasury proposes rules on issuance, offer and sale, including foreign issuers |
| 21 October 2026 | OCC issues its final rule, including foreign issuer registration |
| 23 November 2026 | Comments close on the OCC's application and registration forms |
| 18 January 2027 | Act and OCC rule take effect; lawful order condition applies to foreign-issued coins |
| 18 July 2027 | Treasury's target for reciprocal arrangements with comparable regimes |
| 18 July 2028 | US platforms may offer only stablecoins from permitted or qualifying issuers |
The OCC will announce separately when it starts accepting applications and registrations, once the forms are approved.
The first route is to form a US company and apply for approval as a permitted payment stablecoin issuer. A nonbank applies to the OCC as a federal qualified issuer; a state-chartered issuer can apply to a certified state regulator while its outstanding coins stay at or below US$10 billion.
The OCC's final rule sets the core requirements for its issuers:
The OCC must say within 30 days whether an application is substantially complete and decide within 120 days after that, or the application is deemed approved. An existing issuer with a substantially complete application pending on 18 January 2027 can ask for a waiver of up to 12 months while it is decided. This route gives certainty, at the cost of building and capitalising a US entity. Our guide to the US money transmitter licence for stablecoin companies covers the state licences that sit alongside it.
The second route lets an issuer stay outside the US and still have its coin offered to US users. Section 18 of the Act sets four conditions, all of which must be met.
| Condition | What it means |
|---|---|
| Comparable regime | Treasury has determined that the issuer's home regulatory regime is comparable to the GENIUS Act |
| OCC registration | The issuer is registered with the OCC as a foreign payment stablecoin issuer |
| US reserves | Reserves are held at a US financial institution, enough to meet US customers' liquidity needs, unless a reciprocal arrangement provides otherwise |
| Not a sanctioned jurisdiction | The home country is not under comprehensive US sanctions or designated a primary money laundering concern |
The issuer must also be technologically able to comply with lawful US orders, such as an order to freeze or burn coins, and must comply with them.
Once registered, a foreign issuer files a monthly report on its US holdings and reserves, is subject to OCC examination and fees, and meets the same reporting requirements as a US issuer unless a reciprocal arrangement says otherwise. The OCC, in consultation with Treasury, can withdraw the registration for non-compliance.
The foreign route depends on Treasury finding the home regime comparable, and as at November 2026 it had not done so for any jurisdiction, including the EU, the UK, Singapore, Japan and the UAE. Treasury's proposed rule of 18 August 2026 sets out the process: the Secretary acts on the recommendation of the other members of the Stablecoin Certification Review Committee, publishes a justification in the Federal Register, and decides within 210 days of a substantially complete request.
| Home regime | What an issuer there should do now |
|---|---|
| EU (MiCA e-money token issuers) | Prepare for both routes; monitor Treasury's first determinations |
| UK (FCA stablecoin regime from 25 October 2027) | Plan a US subsidiary if US users matter before the UK regime starts |
| Hong Kong (HKMA stablecoin licences) | Map the HKMA regime against the Act's reserve and redemption rules |
| Singapore (MAS single currency stablecoins) | As above; MAS rules on reserves and redemption are close to the Act |
Until a determination exists, a foreign issuer cannot rely on route two. Issuers with material US demand are therefore planning a US entity, while keeping the foreign registration file ready for when the first determinations are published.
The pressure arrives through distribution. From 18 January 2027 a US digital asset service provider may not deal in a foreign-issued payment stablecoin unless the issuer can and will comply with lawful US orders. From 18 July 2028 the wider prohibition applies: US platforms may offer or sell only payment stablecoins from permitted issuers or registered foreign issuers.
US exchanges and wallets will start their own reviews well before those dates. Expect requests for:
An issuer that answers these clearly keeps its listings through 2027 and 2028.
Many non-US issuers assume the Act does not reach them because they are incorporated and licensed elsewhere. Treasury's proposed rule of 18 August 2026 takes a wider view. It treats a payment stablecoin as issued in the United States if the issuer is located there or issues to a person located there, and it treats a free promotional airdrop to a US user as an issuance. Direct issuance and redemption for US customers, US-facing marketing and US corporate clients minting through the issuer's own portal all bring the issuer into scope.
The consequences are serious. Knowingly taking part in unlawful issuance carries a fine of up to US$1 million for each violation, up to five years in prison, or both. Issuers should therefore check three things now:
Where the answer to any of these is yes, the issuer needs one of the two routes, or a plan to stop US-facing activity before 18 January 2027. Our US money transmitter licence page explains the state licensing that applies to firms moving stablecoins for US customers.
| Factor | US issuer | Foreign registration |
|---|---|---|
| Available from 18 January 2027 | Yes, once the OCC accepts applications | Only after a Treasury determination for the home regime |
| US entity and capital | Required | Not required |
| Reserve location | US eligible assets | Enough in US institutions for US users |
| Ongoing supervision | OCC or certified state | Home regulator plus OCC registration and reporting |
For issuers whose US users are a small share of holders, waiting for the foreign route may be the right answer, provided the lawful order condition is met from January 2027. For issuers where US distribution is central to the business, a US issuer is the route that does not depend on Treasury's timetable. Our stablecoin licensing practice prepares both files, and our guide to stablecoin licences by country compares the home regimes.
Issuers that complete the first four steps before the end of 2026 keep every option open: they can file a US application before the effective date, and they will be ready to register as a foreign issuer as soon as their home regime is found comparable.
Yes, by forming a US issuer approved by the OCC or a certified state, or by registering with the OCC as a foreign issuer once Treasury finds its home regime comparable and it holds enough reserves in the US.
Not as at November 2026. No determination had been published for the EU, UK, Singapore, Japan, the UAE or any other jurisdiction.
On 18 January 2027, together with the OCC's final rule issued on 21 October 2026.
From 18 January 2027 US platforms may not deal in a foreign-issued payment stablecoin unless the issuer can and will comply with lawful US orders. From 18 July 2028 they may offer only coins from permitted or registered foreign issuers.
Yes. It must hold reserves at a US financial institution sufficient to meet US customers' liquidity needs, unless a reciprocal arrangement between the US and its home jurisdiction provides otherwise.
No. Paying interest or yield on a payment stablecoin is prohibited for permitted issuers.
Get in touch: WhatsApp +44 7563 115980, Telegram @buckinghamcapital or [email protected].
This article is general information, not legal advice. Requirements change, and the regulator’s own publications take precedence.
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