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 continue offering interest-like rewards tied to stablecoins under its final rule implementing the GENIUS Act, according to The Associated Press. The rule takes effect Jan. 18, 2027.

Who can pay rewards under the rule?

Stablecoin issuers remain barred from paying interest directly to coin holders, AP reported. Exchanges and other platforms that hold or trade stablecoins can pass on earnings from those assets as rewards on a case-by-case basis, the report said.

The OCC’s final rule summary sets requirements for payment stablecoin issuers under its jurisdiction, covering areas including reserve assets, redemptions, risk management, custody and supervision. The agency’s summary does not detail the case-by-case treatment of platform rewards; that distinction was reported by AP.

Where does the reward yield come from?

Stablecoins are designed to hold a steady value, often one U.S. dollar, and are backed by assets such as bank deposits and U.S. Treasuries, AP reported. Those backing assets can earn interest. Platforms may share some of that return with customers, while issuers themselves cannot pay holders interest under the rule, according to AP.

The decision follows a dispute over whether rewards could draw deposits away from banks. Banking groups have argued that crypto yields could reduce banks’ capacity to lend; the American Bankers Association said the OCC decision would threaten funds banks use to make loans, AP reported.

What happens next?

The rule and the GENIUS Act take effect Jan. 18, 2027, the OCC said. The agency said it will announce separately when it begins accepting applications from prospective permitted stablecoin issuers.

The OCC said it will coordinate with other agencies on remaining rules covering anti-money laundering, Bank Secrecy Act requirements and sanctions. How it will assess individual platforms’ reward programs remains case by case, according to AP.

Source material

• The Associated Press — apnews.com
• final rule summary — occ.treas.gov