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OCC leaves exchange stablecoin rewards to case-by-case review

The OCC finalized its GENIUS Act rule on Oct. 21, leaving exchange-paid stablecoin rewards subject to case-by-case review while barring issuers from paying yield directly.

Crypto Bulletin Newsroom 2 min read

OCC leaves exchange stablecoin rewards to case-by-case review

The Office of the Comptroller of the Currency finalized its GENIUS Act stablecoin rule on Oct. 21, leaving crypto exchanges able to offer some stablecoin rewards while requiring the agency to assess arrangements case by case. The OCC says the rule takes effect Jan. 18, 2027, and the final-rule announcement covers issuers under its jurisdiction and certain custody activities.

Can exchanges still offer stablecoin rewards?

Yes, but the final rule does not grant blanket approval: the OCC says it will evaluate arrangements under the GENIUS Act based on their facts and circumstances. As the Associated Press reported, exchanges such as Coinbase and Robinhood can pass earnings from stablecoins to customers as interest-like rewards.

What does the rule prohibit issuers from doing?

The rule bars a permitted payment stablecoin issuer from paying interest or yield to holders solely because they hold, use or retain its stablecoin. The OCC’s final text says that prohibition applies to payments to both retail and institutional holders. It also says an intermediary payment may require closer review where it is unclear whether the payment is made solely in connection with holding, using or retaining a stablecoin.

Why did the OCC leave rewards to individual review?

The OCC dropped a proposed presumption that certain arrangements with affiliates or related third parties would violate the yield prohibition. Instead, the final rule says the agency will apply the statute to each arrangement’s relevant facts and circumstances, and may take enforcement action if it finds evasion.

The rule does not grandfather rewards programs that existed before the GENIUS Act, according to the OCC’s final text. Those programs will be assessed under the same standard as later programs. The OCC also declined to publish a list of permitted or prohibited reward structures, leaving platforms to assess how their programs fit the statutory ban.

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