Treasury Secretary Bessent invokes Lincoln's 1863 act to back Trump's law

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1. 1h ago

   Bessent Invokes Lincoln Act to Back Trump Stablecoin Law

   Treasury Secretary Scott Bessent compared the Trump administration's stablecoin legislation to Abraham Lincoln's National Currency Act of 1863. Bessent praised the Office of the Comptroller of the Currency final rule implementing the GENIUS Act, calling it a watershed moment in American finance. The OCC rule establishes a framework for stablecoin reserves, redemptions, and related services, while federal bank regulators stated cryptocurrency companies can keep paying interest-like rewards. The rule and the law will take effect on January 18, 2027. Meanwhile, the American Bankers Association accused the OCC of undermining Congress with the final stablecoin rewards rule.

   Why it matters

   The GENIUS Act was signed in 2025 to establish a federal regulatory framework for payment stablecoins. Proponents argue that forcing stablecoin issuers to back tokens with U.S. Treasuries turns digital assets into an engine for government financing and combats de-dollarization. However, the final rules have drawn pushback from traditional banking groups over specific provisions.

   What is confirmed

   • U.S. Treasury Secretary Scott Bessent compared a law signed by Trump to President Abraham Lincoln’s National Currency Act of 1863.
   • The Office of the Comptroller of the Currency issued a final rule to implement the GENIUS Act, governing stablecoin reserves, redemptions, and related services.
   • The OCC rule and the GENIUS Act will take effect on January 18, 2027.
   • Federal bank regulators stated that cryptocurrency companies can keep paying interest-like rewards.
   • The American Bankers Association accused the OCC of undermining Congress with the final stablecoin rewards rule.

   Still unconfirmed

   • By forcing stablecoin issuers to back every token with U.S. Treasuries, digital assets are turning into a primary engine for financing the U.S. government and crushing de-dollarization efforts by China.

   What to watch next

   • Implementation of the OCC rule and the GENIUS Act on January 18, 2027.
   • Future OCC rulemaking regarding anti-money laundering and sanctions rules.
   Sources used for this update (20)

   1. finance.yahoo.com — Yahoo Finance - Stock Market Live, Quotes, Business & Finance News
   2. flipboard.com — Beloved singer’s wife killed after welcoming robbery suspects with lemonade
   3. TheStreet — Treasury Secretary Bessent invokes Lincoln's 1863 act to back Trump's law
   4. Yahoo Finance — Stablecoins just got some regulatory clarity
   5. Office of the Comptroller of the Currency (OCC) (.gov) — OCC Advances U.S. Digital Asset Leadership with Final Rule to Implement GENIUS Act
   6. AP News — Cryptocurrency companies can keep paying interest-like rewards, say federal bank regulators
   7. CoinDesk — OCC's final rule to start fresh in weighing stablecoin rewards against GENIUS Act ban
   8. The Block — American Bankers Association accuses OCC of undermining Congress with final stablecoin rewards rule
   9. Yahoo Finance — Stablecoins just got the regulatory clarity industry wanted
   10. TradingView — Bitcoin, Ethereum, XRP, Dogecoin Rise as Scott Bessent Compares GENIUS Act to Lincoln's Currency Milestone: Analyst Notes BTC's Sentiment- Defying Move
   11. Office of the Comptroller of the Currency (OCC) (.gov) — GENIUS Act Regulations: Final Rule
   12. American Banker — Stablecoins need more than yield; they need ubiquity
   confidence 100%