OCC rule leaves stablecoin rewards possible under GENIUS Act
The OCC's GENIUS Act rule leaves exchange rewards possible while barring stablecoin issuers from paying holders yield solely for holding their coins.
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The Office of the Comptroller of the Currency (OCC) issued a final GENIUS Act rule on Oct. 21 that leaves crypto platforms able to offer stablecoin rewards, while keeping the ban on issuers paying holders yield solely for holding, using or retaining their coins, according to the Federal Register rule.
The distinction matters for exchanges that hold stablecoins for customers. The rule covers issuers under OCC jurisdiction and certain related activities; it does not grant exchanges blanket approval for every rewards program.
What does the rule change for rewards?
The OCC removed a proposed presumption that certain payments involving an issuer’s affiliates or related third parties would violate the yield ban. Instead, the agency said it will initially monitor issuer arrangements through applications and ongoing supervision, evaluating whether specific activities comply with the law.
The OCC also declined to define “interest” or “yield.” It said those terms will be assessed under statutory interpretation and the facts of each case. The agency retained authority to act against attempts to evade the prohibition, including when an issuer uses an intermediary to make a payment on its behalf.
Can stablecoin issuers pay holders directly?
No. The GENIUS Act bars permitted stablecoin issuers from paying holders interest or yield solely because they hold, use or retain a payment stablecoin. The rule does not create a safe harbor for existing rewards programs: the OCC said programs begun before the law will be evaluated under the same standard as later programs.
Crypto platforms such as Coinbase and Robinhood have offered rewards tied to stablecoins, the Associated Press reported. The OCC rule leaves those arrangements to case-by-case review where issuers under its jurisdiction are involved; whether a particular program violates the law depends on its structure and facts.
When does the rule take effect?
The final rule and the GENIUS Act take effect Jan. 18, 2027, the OCC said in its announcement of the final rule. The agency said it will announce separately when it begins accepting issuer applications and waiver requests.
Sources and documents
- Federal Register rule — govinfo.gov
- announcement of the final rule — occ.gov