OCC rule leaves crypto platforms free to offer stablecoin rewards

The Office of the Comptroller of the Currency said on Oct. 21 that crypto platforms can pass stablecoin earnings to customers as rewards under its final rule implementing the GENIUS Act. The rule leaves stablecoin issuers barred from paying interest directly to coin holders, according to the Associated Press report.

Who can offer rewards under the OCC rule?

Exchanges that trade and hold stablecoins, including Coinbase and Robinhood, can pass earnings from those coins to customers on a case-by-case basis, the AP reported. The OCC's final rule notice says the GENIUS Act rules cover payment stablecoin issuance and certain related activities under OCC jurisdiction.

Stablecoins are designed to hold a steady value, often at $1, and are backed by assets such as bank deposits and U.S. Treasuries. Those reserves earn interest, which crypto companies have sought to pass on to customers as a yield, according to AP.

When does the rule take effect?

The OCC says the final rule takes effect Jan. 18, 2027, the same date the GENIUS Act takes effect. The agency said the rule covers reserve assets, redemptions, risk management, reporting and supervision, among other requirements.

Why did banks oppose rewards?

Banking groups have warned that higher crypto yields could draw deposits away from banks and reduce their capacity to lend, AP reported. Coinbase offers up to 3.5% yield on USDC balances, compared with a 0.38% average for traditional savings accounts in the latest Federal Deposit Insurance Corp. figures cited by AP.

The American Bankers Association said the OCC decision threatens funds banks use to make loans. Crypto rewards remain available under the rule, while stablecoin issuers themselves cannot pay holders interest, AP reported.

Sources

• Associated Press report — apnews.com
• final rule notice — occ.gov