OCC lets crypto platforms offer stablecoin rewards

The Office of the Comptroller of the Currency said Oct. 21 that crypto platforms may offer interest-like rewards tied to stablecoin balances under its final rule implementing the GENIUS Act, leaving a route for exchanges to pass earnings to customers. The Associated Press report said the rule allows the practice case by case, despite banks’ calls for tighter limits.

Can stablecoin issuers pay interest directly?

No. The rule maintains a ban on stablecoin issuers, such as Circle, paying interest to people who hold their coins, according to AP. Exchanges that trade or hold stablecoins, including Coinbase and Robinhood, can pass along earnings from those coins as rewards.

Stablecoins are designed to maintain a steady value, typically $1, and are backed by assets including bank deposits and U.S. Treasuries. The interest earned on those backing assets is what crypto companies seek to turn into customer yield, AP reported.

What did the OCC rule change?

The OCC issued the final rule to implement the GENIUS Act, which establishes federal requirements for payment stablecoin issuers. The agency’s final rule bulletin covers issuance and related activities by entities under OCC jurisdiction, including requirements for reserves, redemption, risk management, audits and supervision.

The OCC bulletin does not set a blanket ban on third-party rewards. AP reported that exchanges can offer them on a case-by-case basis. Banking groups have argued that higher crypto yields could pull deposits from banks and reduce their capacity to lend; the American Bankers Association said the decision threatens funds banks use to make loans.

When does the rule take effect?

The rule takes effect Jan. 18, 2027, according to the OCC. The agency said separate rules covering Bank Secrecy Act requirements, anti-money-laundering measures and sanctions will follow in coordination with the Treasury Department.

References

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