Banks & credit unions
Subsidiaries of insured depository institutions, approved by their primary federal regulator.
Independent guide · Updated September 2026
Stablecoin licensing under the GENIUS Act
From its effective date, issuing a payment stablecoin in the United States without approval will be unlawful. Find out who needs a license, which pathway fits your organization, and what to prepare now.
Who needs a stablecoin license?
Only a "permitted payment stablecoin issuer" may issue a payment stablecoin in the US. Four types of organizations are directly affected.
Fintechs & nonbanks
Federal qualified issuers: nonbank entities and uninsured national banks approved by the OCC.
State-regulated issuers
US-formed issuers approved by a state regulator. Above $10 billion outstanding, a move to federal oversight applies.
Foreign issuers
Issuers from jurisdictions that Treasury deems to have a comparable regime, subject to additional conditions.
The three US licensing pathways
Your corporate structure largely determines your regulator. Choosing the right pathway early is the most important strategic decision.
| Pathway | Who it's for | Approving regulator | Key point |
|---|---|---|---|
| Bank subsidiary | Banks and credit unions issuing through a subsidiary | Primary federal regulator (e.g. FDIC, Federal Reserve, OCC, NCUA) | Leverages existing supervisory relationship |
| Federal qualified issuer | Nonbank fintechs, uninsured national banks, federal branches | OCC | Single federal license, nationwide |
| State qualified issuer | US-formed issuers under a certified state regime | State regulator | Transition to federal oversight above $10B outstanding (within 360 days, unless waived) |
Core obligations for licensed issuers
Approval is only the start. These requirements shape your business model, operations and costs.
1:1 reserves
Backed at least one-to-one by cash, insured deposits, short-term Treasuries (≤ 93 days), qualifying repos and government money market funds.
Monthly transparency
Monthly public report on reserve composition, examined by a registered public accounting firm, with CEO and CFO certification.
No yield to holders
Permitted issuers may not pay interest or yield to payment stablecoin holders.
AML & sanctions
Issuers are treated as financial institutions under the Bank Secrecy Act: AML program, customer identification, suspicious activity reporting, sanctions screening.
Annual audit at scale
Issuers with more than $50 billion in outstanding issuance must publish audited annual financial statements.
Redemption & marketing
Clear, timely redemption policies, and no suggestion that the stablecoin is backed or insured by the US government.
Key dates
The GENIUS Act phases in over three years. Rulemaking is still underway, so final requirements may evolve.
Penalties
Knowingly issuing a payment stablecoin in the US without approval can lead to fines of up to $1,000,000 per violation, up to five years' imprisonment, or both.
GENIUS Act signed into law (Public Law 119-27).
Treasury, OCC, FDIC, Federal Reserve and NCUA publish proposed implementing rules.
Comment period closes on Treasury's proposed licensing rules.
Expected effective date. Issuing without approval becomes unlawful (earlier if final rules are issued sooner).
Digital asset service providers may no longer offer or sell payment stablecoins from non-permitted issuers to US persons.
Preparing an application?
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