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OCC rule leaves stablecoin rewards open to crypto exchanges

The OCC’s final GENIUS Act rule leaves exchanges room to pass stablecoin earnings to customers as rewards, while issuers remain barred from paying holders interest.

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OCC rule leaves stablecoin rewards open to crypto exchanges

The Office of the Comptroller of the Currency said crypto exchanges may continue offering customers interest-like rewards tied to stablecoins under its final GENIUS Act rule, issued Oct. 21. The rule leaves the practice to case-by-case review, according to the Associated Press report.

What does the rule allow exchanges to do?

Stablecoin issuers such as Circle remain prohibited from paying interest directly to people who hold their coins, AP reported. Exchanges that trade and hold stablecoins, including Coinbase and Robinhood, can pass some earnings from those coins to customers as rewards.

Stablecoins are designed to maintain a steady value, typically $1 per coin, and are backed by assets such as bank deposits and U.S. Treasuries. Interest earned on those reserves is the source of the potential customer yield, AP reported.

When does the OCC rule take effect?

The OCC’s final rule implements the Guiding and Establishing National Innovation for U.S. Stablecoins Act, or GENIUS Act, and takes effect Jan. 18, 2027, the agency said in its final rule bulletin. The law, enacted July 18, 2025, established a federal framework for payment stablecoins.

The OCC rule covers stablecoin issuance and related activities by entities under its jurisdiction, including certain banks and approved federal or state issuers. Separate rules on Bank Secrecy Act, anti-money laundering and sanctions requirements will follow, the agency said.

Why are banks opposing stablecoin rewards?

Banking groups say rewards could draw deposits away from banks and reduce their capacity to lend. The American Bankers Association said the OCC decision threatens funds banks use to make loans, AP reported.

Coinbase offers up to 3.5% yield on USDC balances, compared with a 0.38% average savings account yield, AP reported, citing FDIC figures. The OCC’s rule takes effect next January; it does not bar exchanges from offering rewards, but leaves them subject to case-by-case review.

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