OCC leaves room for stablecoin rewards under GENIUS Act
The OCC finalized GENIUS Act rules that bar issuers from paying yield solely for holding stablecoins, while leaving third-party rewards to case-by-case review.
The Top Crypto Editors 2 min read
Can crypto platforms keep offering rewards tied to stablecoins? The OCC’s final GENIUS Act rule leaves room for third-party reward arrangements, while barring issuers from paying interest or yield solely for holding, using or retaining their coins. The rule takes effect January 18, 2027, and the OCC says it will assess arrangements as they arise.
In its final rule bulletin, the Office of the Comptroller of the Currency said the regulation covers stablecoin issuance and certain custody activities under its jurisdiction. The Associated Press report says exchanges such as Coinbase and Robinhood may pass earnings from stablecoins to customers as rewards, subject to case-by-case review.
What does the rule prohibit issuers from paying?
Payment stablecoin issuers cannot pay holders interest or yield solely because they hold, use or retain the stablecoin. The GENIUS Act allows rewards only where they do not amount to a payment for those activities under the law. The OCC declined to define “interest” and “yield” in the final rule, saying it will interpret them based on the facts and circumstances.
The agency also dropped a proposed rebuttable presumption that would have treated certain issuer arrangements with affiliates or third parties as violations unless issuers rebutted that assumption. Instead, the OCC says it will monitor issuer arrangements through applications and ongoing supervision, and take action if it finds violations or evasion.
How will the OCC judge a rewards arrangement?
There is no blanket approval for platform rewards. The OCC says it will examine the substance of transactions, including whether a payment is genuinely made for a purpose other than holding, using or retaining a stablecoin. It also says transaction-based payments may fall outside the ban if they are not interest or yield, or are not made solely in connection with those activities.
That leaves the boundary dependent on the design and funding of each program. The next date to watch is January 18, 2027, when the rule takes effect; the OCC says it will announce separately when it begins accepting issuer applications.
References
- final rule bulletin — occ.treas.gov
- Associated Press report — apnews.com