Bank lobby says OCC’s GENIUS rules let stablecoins pay yield through the back door

24 Oct 2026

24 Oct 2026, 04:05 UTC+02:00

The fight over who gets to pay interest on digital dollars has moved from Congress to the regulators. The American Bankers Association (ABA) criticized the Office of the Comptroller of the Currency’s final rules implementing the GENIUS Act, saying they go against what Congress intended on stablecoin yield.

What the banks object to

The GENIUS Act bans payment stablecoin issuers from paying yield to holders. In its proposal, the OCC had included a presumption that certain third party arrangements violated that ban. The final rule dropped it. “The final rule removes the OCC’s originally proposed safeguards that would have addressed indirect arrangements involving affiliates, exchanges and other distribution partners,” the ABA said. “As a result, payment stablecoin issuers can provide economically equivalent yield while technically avoiding the statutory prohibition.”

The group warned the gaps “risk undermining the distinction Congress drew between payment stablecoins and traditional bank deposits, threatening the funds banks use to make the loans that drive the US economy.” The Bank Policy Institute agreed, saying omitting the presumption “replaces clarity with ambiguity” and risks deposit flight.

The other side

The Blockchain Association welcomed the change, saying the OCC brought “the final rule more closely in line with the statutory text.” Rewards programs, where exchanges pass part of stablecoin reserve income to users, are a major business for platforms that distribute USDC and other coins.

What comes next

The OCC finalized its rules ahead of the GENIUS Act taking effect in January 2027. The Federal Reserve and Treasury are expected to publish their own implementing rules. Stablecoin yield also remains a sticking point in the stalled Clarity Act market structure bill.

What it means for traders

• Stablecoin rewards likely survive for now: exchange programs paying rewards on USDC balances are not banned by the OCC rule.
• Political risk remains: banks will keep lobbying, and future rules could tighten.
• Compare reward offers carefully: rewards are not deposit insurance. See our exchange comparison and our testing methodology.

Sources

• Cointelegraph: American Bankers Association: OCC's GENIUS rules 'undermine' US Congress

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