Treasury Secretary Bessent likens GENIUS Act to Lincoln-era banking reform

US Treasury Secretary Scott Bessent has compared the Trump administration’s landmark stablecoin legislation to banking reforms enacted under President Abraham Lincoln, drawing parallels between two efforts to establish a national framework for American currency more than 160 years apart.

In a Wednesday post on X, Bessent hailed the Office of the Comptroller of the Currency’s (OCC) final rule implementing the GENIUS Act, calling the legislation a “watershed moment in American finance.”

Bessent drew a comparison to the National Currency Act of 1863, which established a federal framework for nationally chartered banks to issue currency. He argued that the GENIUS Act serves a similar purpose for payment stablecoins in the digital age.

Bessent said the OCC rule would support “private-sector innovation, competition, and American leadership in digital assets.”

Source: Scott Bessent

As Cointelegraph reported Wednesday, the OCC finalized rules governing stablecoin reserves, redemptions and related services. The rules are scheduled to take effect on Jan. 18, 2027.

Jonathan Gould, comptroller of the currency, described the regulations as a “clear, practical framework for payment stablecoin innovation.”

Related: Mastercard launches stablecoin risk screening for banks and payment providers

What the OCC’s stablecoin rules mean for issuers

The GENIUS Act, signed into law in 2025, established a federal regulatory framework for payment stablecoins. The OCC’s final rule sets out how that framework will apply to issuers under its supervision, including requirements for reserves, redemptions and risk management.

Beginning Jan. 18, 2027, companies issuing payment stablecoins in the United States will generally need regulatory approval under the GENIUS Act. Issuing stablecoins without the required authorization could carry penalties.

The OCC said the final rule covers national banks, federal savings associations, federal branches of foreign banks and nonbank companies seeking approval to issue payment stablecoins under federal supervision. It also covers certain foreign payment stablecoin issuers.

The rules come as dollar-denominated stablecoins gain traction for payments and money transfers, even as growth in their overall supply has stalled.