OCC rule leaves crypto platform stablecoin rewards in play

The Office of the Comptroller of the Currency finalized stablecoin rules on Oct. 21 that keep crypto platforms’ interest-like rewards possible, while barring issuers from paying yield directly to holders, according to The Associated Press. The distinction matters to exchanges that offer rewards tied to stablecoin balances.

How does the rule treat rewards paid by platforms?

The OCC will assess platform and third-party reward arrangements individually, rather than treating them all as prohibited. Its final rule removes a proposed presumption that some arrangements between issuers, affiliates and third parties violated the yield ban.

The OCC says it will apply the law to each arrangement’s facts and circumstances and retains authority to address evasion. It did not create a general safe harbor for rewards, including programs that began before the GENIUS Act was enacted.

What payments are stablecoin issuers barred from making?

Issuers may not pay holders interest or yield, in cash, tokens or other consideration, solely because they hold, use or retain a payment stablecoin. The OCC says an issuer cannot avoid the ban by paying an agent to make that payment on its behalf.

The GENIUS Act, signed into law on July 18, 2025, sets the statutory framework. The OCC’s rule covers issuers under its jurisdiction and certain custody activities by entities it supervises.

When do the rules take effect?

The final rule takes effect Jan. 18, 2027, the OCC said. Until then, the agency’s announcement sets out how it plans to implement the law, including its case-by-case approach to rewards.

Banks have argued that stablecoin rewards could pull deposits from the banking system and reduce lending, AP reported. The OCC’s rule leaves those rewards subject to review rather than banning them across the board.

Sources and documents

• The Associated Press — apnews.com
• final rule — occ.gov