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Regulation explainer

The GENIUS Act and tokenized deposits

The U.S. now has a federal rulebook for stablecoins. Here's what the OCC's October 21, 2026 final rule says, and why it matters for bank-issued tokenized deposits.

Updated October 25, 2026 · Not legal advice

Key dates

  • July 18, 2025: the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act) is signed into law.
  • April 7, 2026: FDIC staff recommend a proposed rule that, among other things, addresses tokenized deposits.
  • October 21, 2026: the OCC issues its final rule implementing the GENIUS Act (OCC Bulletin 2026-50), and it's published in the Federal Register on October 23.
  • January 18, 2027: the GENIUS Act and the OCC final rule take effect.
  • To be announced: the OCC says it will announce separately when it starts accepting applications from would-be stablecoin issuers.

What the GENIUS Act does

The Act creates a federal framework for payment stablecoins, digital tokens meant to hold a steady $1 value. In general, only a "permitted payment stablecoin issuer" may issue one in the United States, and platforms may only offer stablecoins from permitted or qualifying foreign issuers.

What the OCC final rule covers

The rule applies to stablecoin issuers under the OCC's jurisdiction, including subsidiaries of national banks and federal savings associations, federal qualified issuers, certain state qualified issuers, and foreign issuers. Most of it sits in a new 12 CFR Part 15, covering:

  • Permitted activities
  • Reserve assets and redemption
  • Risk management, audits, reports, and supervision
  • Custody
  • Applications and registrations
  • Capital and an "operational backstop"

Anti-money-laundering and sanctions rules are handled in a separate rulemaking with the Treasury Department.

The yield ban, and what changed

The GENIUS Act prohibits stablecoin issuers from paying holders interest or yield just for holding, using, or keeping a stablecoin. Press coverage of the final rule reports that the OCC dropped a proposed presumption that reward arrangements through affiliates or related third parties automatically break that ban. Instead it will judge those arrangements case by case. The statutory ban itself remains.

Where tokenized deposits fit

Tokenized deposits aren't stablecoins under the GENIUS Act. The Act's definition of "payment stablecoin" excludes a deposit under the Federal Deposit Insurance Act, including a deposit recorded using distributed ledger technology.

That matters for two reasons:

  1. Interest: the stablecoin yield ban doesn't apply to bank deposits, so banks can pay interest on tokenized deposits. SoFi's SOFIE, at a 4.40% variable APY as of October 20, 2026, is one example. SoFi says SOFIE "is not a payment stablecoin."
  2. Insurance: the FDIC's proposal says the legal definition of a deposit is technology neutral, so a tokenized deposit that meets the definition is treated like any other deposit for insurance. The same proposal says bank deposits held as stablecoin reserves would not be insured "pass-through" to the people holding the stablecoin.

What it means for you

  • Expect more banks to launch tokenized deposits as rules firm up.
  • Expect stablecoins to keep paying no issuer interest, although platforms may still offer "rewards" programs.
  • Before moving money, check whether a product is a deposit (possibly insured, may earn interest) or a stablecoin (not insured, no issuer interest).

See current tokenized deposit rates

Sources