OCC rule leaves stablecoin reward programs in place
The OCC’s GENIUS Act rule bars stablecoin issuers from paying holders directly but leaves exchange rewards subject to case-by-case enforcement from Jan. 18.
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The Office of the Comptroller of the Currency on Oct. 21 issued a final rule implementing the GENIUS Act that keeps direct stablecoin interest payments prohibited but does not impose a blanket ban on exchange rewards. The rule takes effect Jan. 18, 2027, and leaves reward arrangements subject to review under the law’s prohibition on issuer-paid yield and its anti-evasion provisions, according to the OCC’s final rule bulletin.
Does the rule let stablecoin issuers pay interest?
No. The GENIUS Act bars permitted payment stablecoin issuers from paying holders interest or yield solely for holding, using or retaining a stablecoin, and the OCC’s rule keeps that ban in place.
The OCC initially proposed a rebuttable presumption covering certain issuer arrangements with affiliates or related third parties that pay holders. In the final rule, the agency dropped that presumption, but said it retains authority to address evasion of the statutory prohibition, including through payments made by an issuer’s agent on its behalf.
Can exchanges still offer rewards?
The OCC did not add a blanket prohibition on rewards paid by exchanges. The Associated Press reported that platforms including Coinbase and Robinhood can pass along earnings to customers, while the OCC’s final rule says arrangements must be assessed under the law and their facts.
The distinction is whether a payment is solely tied to holding, using or retaining the stablecoin and whether the issuer is paying directly or through an agent. The OCC said some arrangements that appear indirect may still fall within the ban; payments not solely connected to holding, use or retention may fall outside it, depending on the facts, according to the AP report on the rule.
When does the rule take effect?
The OCC rule takes effect Jan. 18, 2027, the same date the agency lists for the GENIUS Act’s effective date. The OCC said it will continue to monitor the stablecoin industry and may adjust its supervisory framework as market practices develop.
Source material
- OCC’s final rule bulletin — occ.treas.gov
- AP report on the rule — apnews.com