OCC leaves crypto exchanges room to offer stablecoin rewards

The Office of the Comptroller of the Currency on Wednesday issued final rules implementing the GENIUS Act, barring stablecoin issuers from paying holders interest while leaving exchanges room to offer rewards case by case. The OCC’s announcement says the rules take effect Jan. 18, 2027.

What can exchanges pay stablecoin holders?

Platforms that trade or hold stablecoins, including Coinbase and Robinhood, may pass along earnings as interest-like rewards, the Associated Press reported. The OCC will assess third-party arrangements based on their facts and circumstances, according to the AP’s report on the rule.

The GENIUS Act bars issuers such as Circle from paying interest directly to people who hold their coins, AP reported. Stablecoin issuers earn interest on reserves backing their tokens; exchanges can share earnings with customers through rewards, subject to the OCC’s review.

Why did banks oppose the rewards?

Banking groups argued that stablecoin rewards could draw deposits away from banks and reduce their capacity to lend, AP reported. The American Bankers Association said the OCC’s decision would threaten funds banks use to make loans.

AP reported Coinbase offers up to 3.5% yield on USDC balances, compared with a 0.38% average for traditional savings accounts, citing Federal Deposit Insurance Corp. figures. The banking industry has warned that higher crypto yields could encourage deposit flight.

When do the rules take effect?

The OCC’s final rule and the GENIUS Act take effect Jan. 18, 2027. The agency said it will announce separately when it will begin accepting applications and waiver requests from prospective permitted payment stablecoin issuers.

References

• OCC’s announcement — occ.treas.gov
• AP’s report on the rule — apnews.com