OCC leaves stablecoin rewards to case-by-case review
The OCC’s first GENIUS Act rule leaves exchanges able to seek approval for stablecoin rewards, while issuers remain barred from paying holders directly.
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The U.S. Office of the Comptroller of the Currency issued a final rule on Oct. 21 that leaves crypto exchanges able to offer stablecoin rewards subject to case-by-case review, according to the Associated Press report. The rule implements part of the GENIUS Act, which bars stablecoin issuers from paying interest directly to holders.
Can exchanges keep offering rewards?
Yes, but the OCC will assess each arrangement individually. The agency said it would apply the law to the facts of each case; it did not specify which rewards programs would comply.
The OCC also declined to presume that programs operating before the GENIUS Act comply with the law. Those programs receive no safe harbor, according to CoinDesk’s report on the final rule.
What does the GENIUS Act prohibit?
The law prohibits a permitted stablecoin issuer from paying holders interest or rewards solely for holding, using or retaining the token. The OCC suggested the word “solely” matters: an arrangement that rewards customers at least partly for other reasons may fall outside the ban, CoinDesk reported.
That leaves exchanges such as Coinbase, Robinhood and others able to pass some earnings from stablecoins to customers, the AP reported. Stablecoins are designed to maintain a steady value, typically one U.S. dollar, and are backed by assets such as bank deposits and U.S. Treasuries.
When does the rule take effect?
The OCC rule is set to take effect Jan. 18, 2027, CoinDesk reported. Until then, exchanges will have to assess their programs against the law and the OCC’s case-by-case approach.
Source material
- Associated Press report — apnews.com
- CoinDesk’s report on the final rule — coindesk.com