Bessent Draws Parallels Between GENIUS Act and Lincoln's Banking Transformation
Treasury Secretary Bessent characterizes the GENIUS Act as transformative for American finance as the OCC releases final regulations governing stablecoin reserve requirements and redemption protocols.
Treasury Secretary Scott Bessent of the United States has drawn a historical comparison between the Trump administration's groundbreaking stablecoin legislation and banking reforms implemented during Abraham Lincoln's presidency, establishing connections between two initiatives aimed at creating a nationwide framework for American currency spanning more than a century and a half.
Through a post published on X this Wednesday, Bessent celebrated the final rule from the Office of the Comptroller of the Currency (OCC) that implements the GENIUS Act, characterizing the legislation as representing a "watershed moment in American finance."
The Treasury Secretary made a historical connection to the National Currency Act of 1863, legislation that created a federal structure enabling nationally chartered banks to issue currency. His position was that the GENIUS Act fulfills an equivalent function for payment stablecoins in today's digital era.
According to Bessent, the OCC rule will foster "private-sector innovation, competition, and American leadership in digital assets."
According to Cointelegraph's Wednesday reporting, the OCC has completed its rulemaking process for regulations that govern stablecoin reserves, redemption procedures and associated services. Implementation of these rules is set to commence on Jan. 18, 2027.
Comptroller of the currency Jonathan Gould characterized the regulatory framework as a "clear, practical framework for payment stablecoin innovation."
What the OCC's stablecoin rules mean for issuers
Through the GENIUS Act, which became law in 2025, lawmakers established a federal regulatory structure governing payment stablecoins. The final rule issued by the OCC delineates how this structure will be applied to issuers operating under its jurisdiction, incorporating mandates related to reserves, redemption processes and risk management protocols.
Starting on Jan. 18, 2027, entities that issue payment stablecoins within United States borders will typically require regulatory authorization under the GENIUS Act. The issuance of stablecoins absent the mandated authorization may result in penalties.
According to the OCC, the final rule applies to national banks, federal savings associations, federal branches of foreign banks and nonbank entities pursuing authorization to issue payment stablecoins under federal oversight. Coverage also extends to particular foreign payment stablecoin issuers.
These regulations arrive at a time when dollar-denominated stablecoins are experiencing increased adoption for payment transactions and money transfers, despite the fact that growth in their total supply has reached a plateau.