OCC part 15 drops the automatic redemption extension

The Office of the Comptroller of the Currency (OCC) has finalised 12 CFR part 15 so a permitted payment stablecoin issuer keeps a two-business-day redemption outer bound and must notify its supervisory office within 24 hours when requests on any one brand exceed 10 percent of that brand's outstanding issuance value.

Federal Register document 2026-21706, RIN 1557-AF41, Docket ID OCC-2025-0372, was published on October 23, 2026, and is effective on January 18, 2027. It implements the Guiding and Establishing National Innovation for U.S. stablecoins Act (GENIUS Act) (12 U.S.C. 5901 et seq.) and drops the March 2, 2026 proposal's automatic seven-calendar-day extension.

Key facts

• Effective January 18, 2027, the date news release 2026-92 also gives for the GENIUS Act, per Federal Register document 2026-21706.
• Federal Register Vol. 91, No. 204, October 23, 2026, page 67000, signed by Comptroller Jonathan Gould.
• Proposal March 2, 2026, at 91 FR 10202. About 328 comments; the comment period closed May 1, 2026, with late letters through July 1, 2026.
• Two-business-day redemption bound in 12 CFR 15.12(c)(1). Notice within 24 hours if requests exceed 10 percent of any brand's outstanding issuance value in one 24-hour period (12 CFR 15.12(d)(1)).
• Reserves must cover outstanding issuance at all times, with a 5 percent demand sleeve and a 40 percent counterparty cap (12 CFR 15.11).
• Capital floor of $5 million during 36 de novo months, unless chartering conditions set a higher figure, plus a backstop equal to 12 months of total expenses (12 CFR 15.41).

Methodology and sources

The text analysed is the final-rule PDF for Federal Register document 2026-21706, read with the Federal Register document page that records the January 18, 2027 effective date. The window runs from enactment on July 18, 2025, to publication on October 23, 2026. Scope follows 12 CFR 15.1: national banks, federal branches, foreign issuers, nonbank federal qualified issuers, and state qualified issuers under sections 15.15 or 15.16.

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The comparison uses the final redemption section, the proposal as the preamble restates it at 91 FR 10202, and the June 8, 2022 industry letter from the New York State Department of Financial Services (DFS). Comptroller remarks come from OCC news release 2026-92 and news release 2026-69, both reached from the OCC GENIUS Act topic page. Bank Secrecy Act (BSA), anti-money laundering (AML), and sanctions duties sit in a later rulemaking. Related desk pieces are indexed on the regulation desk, and these sources were checked on October 26, 2026.

What 12 CFR part 15 requires on redemption and reserves

Part 15 is a new chapter whose authority line cites 12 U.S.C. 5901 through 5916. Section 15.2 defines outstanding issuance value, a reserve asset, and a business day as any day other than Saturday, Sunday, or a federal holiday. Section 15.10 limits a permitted issuer to issuance, redemption, reserve management, custody, fees, a qualifying reserve trust, and direct support for those lines. Existing bank and trust powers stay available under section 4(a)(7)(B) of the Act (12 U.S.C. 5903(a)(7)(B)).

Section 15.10(c) bars a coin name that uses "United States," "United States Government," or "USG," while a peg such as "USD" remains available. Marketing may not present the coin as legal tender under 31 U.S.C. 5103, as a United States issue, or as a government guarantee, and the issuer may not claim full faith and credit or federal deposit or share insurance. Section 15.10(c)(4) bars yield paid solely for holding, use, or retention. Section 4 anti-evasion authority remains after the proposal's rebuttable presumption on indirect payments was removed.

Section 15.11 requires reserves that are identifiable, segregated, and always at least equal to outstanding issuance. Eligible assets include cash and Federal Reserve Bank money, demand deposits or insured shares, Treasuries with 93 days or less remaining, specified overnight repurchase agreements, government money-market funds in those assets, and tokenised forms of those categories. The demand-liquidity floor is 5 percent, down from the proposal's 10 percent. One counterparty is capped at 40 percent, excluding the United States government, a section 15.11(d) custodian, and centrally cleared repurchase agreements.

The OCC brand-level redemption notice in 12 CFR 15.12(d)(1) is a supervisory alert on a single brand, while the two-business-day clock continues unless the OCC grants relief. A permitted payment stablecoin issuer must notify its supervisory office within 24 hours after redemption requests exceed 10 percent of the outstanding issuance value of any brand in one 24-hour period, the test in Federal Register document 2026-21706, effective January 18, 2027. The March 2, 2026 proposal at 91 FR 10202 would have made a seven-calendar-day extension automatic once demands passed 10 percent of the issuer's whole book in 24 hours. The OCC dropped that extension because an automatic pause could prove pro-cyclical and could worsen a run. Section 15.12(d)(2) lets the issuer request more time, and section 15.12(d)(3) lets the OCC grant or deny that request under section 4(a)(1)(B)(i) of the GENIUS Act (12 U.S.C. 5903(a)(1)(B)(i)). The preamble says extensions should be rare.

Section 15.12(a) starts the duty when the order is in and, where onboarding avoids undue delay, when the customer is onboarded. Redemption is complete once the outgoing transfer is initiated or the issuer credits the customer's account if asked. The public policy must state both timeframes and explain section 15.12(d). A fee change needs seven calendar days' prior notice. Section 15.12(e) requires a plain statement that the coin is not legal tender and is not insured by the Federal Deposit Insurance Corporation (FDIC). Section 15.12(f) withholds a redemption that would violate another law.

How the final rule, the proposal, and New York diverge

Sources: OCC final rule PDF, the proposal as described at 91 FR 10202, and the DFS letter of June 8, 2022, each checked on October 26, 2026.

The final unit is any one brand, and the preamble treats the test as technology-neutral, so a move across chains leaves the count unchanged. Capital design sits apart from the Federal Reserve Docket R-1899 capital proposal. The Canada Gazette draft on non-bank issuers is a different registration instrument. The Singapore systemic-stablecoin draft and the FCA cryptoasset gateway address other gates.

Three redemption regimes differ in who may slow a rush and in whether a 10 percent spike creates that slowdown on its own. Final 12 CFR 15.12, effective January 18, 2027, keeps timely redemption inside two business days and requires notice to the OCC within 24 hours if requests exceed 10 percent of any one brand's outstanding issuance value in a single 24-hour period, as Federal Register document 2026-21706 provides. Only an OCC decision under section 15.12(d)(3), tied to GENIUS Act section 4(a)(1)(B)(i) (12 U.S.C. 5903(a)(1)(B)(i)), can lengthen that period. The March 2, 2026 proposal at 91 FR 10202 would have moved the deadline to seven calendar days automatically at 10 percent of the whole outstanding issuance. New York's June 8, 2022 letter uses a T+2 default and lets DFS require or allow a slower redemption where timely payment would likely jeopardise the reserve. A New York-only issuer stays outside part 15 unless section 15.15 or 15.16 applies.

"Today’s final rule advances President Trump and Secretary Bessent’s vision for American leadership in digital assets. We are providing a clear, practical framework for payment stablecoin innovation, with strong standards for reserve backing, redemption, and risk management. The OCC is drawing on its longstanding supervisory expertise to support responsible growth and innovation for this new industry."

— Jonathan Gould, Comptroller of the Currency, Office of the Comptroller of the Currency (OCC news release 2026-92, October 21, 2026)

Interest-rate failures the OCC cites, and the penalty path in part 19

Treasuries count towards reserves only with 93 days or less left to maturity. Footnote 111 says interest-rate mismanagement was a leading cause of failure in two of the three United States money-market funds whose net asset value fell below $1, called breaking the buck, and that those failures ended in liquidation. The orders are In the Matter of John E. Backlund, et al., Investment Company Act Release No. 23639 (January 11, 1999), on the Community Bankers US Government Money Market Fund liquidated in 1994, and In the Matter of First Multifund Advisory Corp. and Milton Mound, File No. 3-5881 (December 29, 1982), on the First Multifund for Daily Income, liquidated in 1978.

Commenters raised Silicon Valley Bank as a receivership example, and the final text answers with the 40 percent cap plus the 5 percent demand sleeve, without a loss figure for that bank. Section 6(b) of the GENIUS Act (12 U.S.C. 5905(b)) sets the civil-money-penalty path, and section 6(b)(5)(D) collects it under Federal Deposit Insurance Act section 8(i)(2), which part 19 now covers. After two consecutive quarter-end misses of capital or the backstop, section 15.41(c)(3) requires liquidation, redemption under section 15.12, no redemption fee, and no further issuance.

What this means for issuers, banks, custodians, and compliance teams

A nonbank seeking federal qualified approval, or an uninsured national bank or federal branch approved under section 15.30, publishes a two-business-day policy, runs the brand-level 24-hour notice, holds the 5 percent demand sleeve, and keeps a backstop equal to 12 months of expenses outside the reserve. De novo capital for 36 months is the greater of the licensing amount or $5 million, and the ongoing floor is also $5 million. Backstop assets are cash, Federal Reserve money, fully insured demand funds, and Treasuries of 93 days or less.

An insured national bank or federal savings association that consolidates such an issuer applies new 12 CFR 3.22(i) inside the section 3.10 ratios: deconsolidate the issuer, deduct retained earnings that arose there and were not paid up as dividends, add back the bank's share of issuer losses, and exclude the investment and receivables from risk-weighted assets and leverage exposure. Part 8's assessment authority cites 12 U.S.C. 5901 et seq., a fee question separate from the issuer's own floor. Custodians outside the 40 percent cap follow section 15.11(d).

Holders rely on section 15.12(e) for the statement that the coin is not a deposit and is not FDIC-insured, while an exchange that only lists the brand does not become the obligor. Contractual delays, including terms that can delay a European redemption, sit beside the federal outer bound.

"Recent public policy discussions have addressed prudential authority over stablecoins generally, as well as specific prudential concerns with stablecoins, such as the existence of appropriate reserves backing the stablecoins and the possibility of “runs” on the stablecoins similar to bank runs."

— Adrienne Harris, Superintendent of Financial Services, New York State Department of Financial Services (DFS industry letter, June 8, 2022)

What remains open before the rule takes effect

The effective date is January 18, 2027, and news release 2026-92 of October 21, 2026, gives that date for the GENIUS Act as well, while a later notice will open applications and waiver requests. On August 19, 2026, news release 2026-69 recorded Comptroller Gould saying a final rule would be out by November, a window the October 23 publication meets. News release 2026-69 also recorded 40 new-charter applications, 23 of them with digital-asset activity, an eightfold rise on the prior administration's four years.

BSA, AML, and sanctions remain in a separate Treasury-coordinated rulemaking. Systemic designation is left to the Federal Reserve, and the OCC describes tax treatment as beyond its authority. The preamble says section 13 coordination made a joint rule unnecessary. The cost discussion assumes $272.3 billion outstanding in 2027 absent the Act, of which $222.3 billion would sit with non-OCC-bank-affiliated issuers and $50 billion with OCC-regulated issuers, against private upper bounds of $378.8 billion in 2027 and $765 billion in 2028, reduced for Tether's announcement that USDT stays off the domestic market and that USAT is intended to comply with the Act.

TL;DR

Federal Register document 2026-21706 creates 12 CFR part 15 under RIN 1557-AF41 and Docket ID OCC-2025-0372, published October 23, 2026 and effective January 18, 2027. Timely redemption may not exceed two business days. When requests on any one brand exceed 10 percent of that brand's outstanding issuance value inside 24 hours, the issuer notifies its supervisory office within 24 hours and may ask the OCC for more time. The March proposal's automatic seven-calendar-day extension was dropped because the OCC said it could worsen a run. Reserves must cover issuance at all times, with a 5 percent demand sleeve, and capital is at least $5 million plus 12 months of expenses. The OCC received approximately 328 comments. Two straight quarter-end shortfalls force liquidation and stop new issuance.

FAQ

What is 12 CFR part 15?

Part 15 is the OCC payment-stablecoin rule in Federal Register document 2026-21706, effective January 18, 2027. Subparts cover definitions, permitted activities, reserves, redemption, custody, federal and foreign approval, and a capital and expense backstop. The population is national banks, federal savings associations, federal branches, their subsidiaries, foreign payment stablecoin issuers, nonbank federal qualified issuers, and state qualified issuers under sections 15.15 and 15.16. Authority is the GENIUS Act, 12 U.S.C. 5901 et seq.

When does the final rule take effect?

The rule takes effect on January 18, 2027, the date in Federal Register document 2026-21706 and the date news release 2026-92 gives for the GENIUS Act. Congress enacted the statute on July 18, 2025. Formal comments closed on May 1, 2026, and the OCC read letters through July 1, 2026. The October 21, 2026 release says the OCC will announce later when it begins accepting applications and waiver requests from prospective permitted payment stablecoin issuers.

What notice follows a 10 percent spike on one brand?

Section 15.12(d)(1) requires notice to the OCC supervisory office within 24 hours when redemption requests exceed 10 percent of any one brand's outstanding issuance value in a single 24-hour period. The ordinary two-business-day period continues unless the OCC grants relief. The issuer may request an extension under section 15.12(d)(2), and section 15.12(d)(3) lets the OCC grant or deny it under GENIUS Act section 4(a)(1)(B)(i). The preamble says that power should be used sparingly.

What is the ordinary redemption deadline?

Section 15.12(c)(1) says timely redemption may not exceed two business days after the request. A business day excludes Saturdays, Sundays, and federal holidays. The clock starts when the order arrives and, where onboarding is built to avoid undue delay even in stress, when the customer is onboarded and other legal conditions are met. Completion is the fully processed outgoing transfer, or a credit to the customer's account if that is what the customer asked for.

What capital and backstop must a permitted issuer hold?

Section 15.41(a) sets de novo capital at the greater of the OCC licensing amount or $5 million, generally for 36 months. De novo status also covers a state issuer that entered in the prior three years without a section 15.15(d) waiver. The ongoing minimum is also $5 million. Section 15.41(b) requires assets equal to 12 months of total expenses, held apart from the section 15.11 reserve, in cash, Federal Reserve money, fully insured demand funds, or Treasuries of 93 days or less. Up to half may be qualifying subordinated debt.

How does the New York letter compare with part 15?

Adrienne Harris's DFS letter of June 8, 2022 requires a reserve at least equal to outstanding units at every business-day close and treats timely redemption as within two full business days after a compliant order. DFS may slow redemption in extraordinary circumstances if paying on time would likely jeopardise asset-backing or an orderly liquidation. Part 15 uses that two-business-day outer bound, adds a 24-hour notice at 10 percent of any brand, and leaves any slowdown to OCC discretion rather than an automatic seven-day extension.

What follows two weak quarters on capital or the backstop?

If capital or the operational backstop is missed at two consecutive quarter-ends, section 15.41(c)(3) requires liquidation of reserves, redemption under section 15.12, no redemption fee, and a stop on new issuance. A single quarter-end miss already bars new issuance from the first day of the next month, except a ledger transfer that leaves net outstanding issuance unchanged. A civil money penalty under GENIUS Act section 6 is a separate track, processed in part 19 under Federal Deposit Insurance Act section 8(i)(2).

This article is informational analysis only and does not constitute legal, regulatory, tax, or investment advice. Regulatory frameworks change frequently and interpretation depends on facts and circumstances; primary documents and official regulator guidance always supersede summaries. Firms should consult qualified legal counsel and their relevant supervisory authority before taking any action based on the analysis above.