OCC leaves stablecoin rewards to case-by-case review
The OCC's GENIUS Act rule leaves exchange-based stablecoin rewards to case-by-case review, while barring issuers from paying yield solely for holding coins.
The Top Crypto Editors 2 min read
Can crypto exchanges keep rewarding you for holding stablecoins? Yes: on Wednesday, the Office of the Comptroller of the Currency finalized a rule under the GENIUS Act that leaves exchange rewards to case-by-case review instead of imposing a blanket ban, according to the Associated Press report. The distinction matters because issuers and exchanges play different roles in passing along returns generated by stablecoin reserves.
Who can pay rewards under the OCC rule?
Stablecoin issuers such as Circle remain barred from paying holders interest solely for holding their coins, AP reported. Exchanges such as Coinbase and Robinhood, which trade and hold stablecoins for customers, may pass along earnings as rewards, with the OCC considering arrangements case by case. That leaves platforms without a blanket prohibition, but does not give every rewards program automatic approval.
The underlying mechanism is the return earned on assets backing stablecoins, including bank deposits and U.S. Treasuries. Crypto companies have sought to share some of those earnings with customers, while the GENIUS Act prohibits issuers from paying yield simply because someone holds, uses or retains a payment stablecoin. In practice, the regulatory line turns on who pays the reward and why.
What does the final rule cover?
The OCC says its final rule implements the GENIUS Act for permitted payment stablecoin issuers and foreign issuers under its jurisdiction, and addresses certain custody activities by OCC-supervised entities. The agency says it received hundreds of comments from crypto companies, community bankers, trade groups and academics. It will announce separately when it begins accepting issuer applications and waiver requests, according to the OCC’s final-rule announcement.
When do the new rules take effect?
The rule and the GENIUS Act take effect on January 18, 2027, the OCC said. Until then, the key uncertainty for platforms is how the agency will apply its case-by-case review to particular reward structures. Watch for the OCC’s application guidance and any further rulemaking on rewards before that date.
References
- Associated Press report — apnews.com
- OCC’s final-rule announcement — occ.treas.gov