OCC leaves stablecoin exchange rewards to case-by-case review
The OCC's GENIUS Act rule bars stablecoin issuers from paying yield but leaves exchange rewards subject to case-by-case review, with the framework starting in 2027.
The Blockheight Editors··2 min read
The Office of the Comptroller of the Currency finalized stablecoin rules on Wednesday that let exchanges offer customers interest-like rewards case by case, according to the Associated Press report. The OCC’s rule implements the GENIUS Act, the federal stablecoin law signed in July 2025.
Who can pay rewards under the new rule?
Stablecoin issuers such as Circle remain barred from paying interest to people who hold their coins, AP reported. Exchanges that trade or custody stablecoins, including Coinbase and Robinhood, may pass earnings from those assets to customers as rewards, subject to case-by-case review.
Stablecoins are designed to hold a steady value, often $1, and are backed by assets such as bank deposits and U.S. Treasuries. Those reserves can earn interest; crypto firms have sought to share some of that return with customers. The distinction in the OCC rule is between the issuer paying holders and an exchange offering rewards.
When does the framework start, and what remains open?
The OCC says its final rule implementing the GENIUS Act takes effect on Jan. 18, 2027. It sets requirements for permitted payment stablecoin issuers and certain related activities, while the OCC says anti-money-laundering and sanctions requirements will come in a separate rulemaking with the Treasury Department.
Banks have argued that higher crypto yields could pull deposits from the banking system and reduce funds available for lending, AP reported. The American Bankers Association said the OCC decision threatens funds banks use to make loans. The rule does not prohibit exchange rewards outright, but the case-by-case approach leaves open which specific programs regulators will allow.
The OCC says it will continue coordinating with other agencies and will separately announce when it begins accepting issuer applications. The rule takes effect in 2027; how the OCC will assess individual reward programs remains unsettled.
Source material
- the Associated Press report — apnews.com
- final rule implementing the GENIUS Act — occ.gov