OCC rules leave stablecoin exchange rewards open to review

The Office of the Comptroller of the Currency finalized rules for U.S. payment stablecoins, keeping a route open for crypto exchanges to offer customers interest-like rewards while barring issuers from paying yield directly. The distinction matters because the return can pass through different companies on its way to a stablecoin holder.

The Federal Register’s OCC final rule, published October 23, implements parts of the GENIUS Act, signed into law July 18, 2025. The rule takes effect January 18, 2027. The OCC received about 328 comments on its proposal, including competing requests to limit or preserve rewards programs.

Who can pay a stablecoin holder?

The Act prohibits a permitted payment stablecoin issuer from paying its holder interest or yield solely in connection with holding, using or retaining the coin. A stablecoin is designed to hold a steady value, often against the U.S. dollar. Its issuer may hold reserve assets such as bank deposits or Treasury securities, which can earn interest.

The payout route described by the Associated Press report on the OCC decision runs through a trading platform: the issuer earns money on reserve assets, while an exchange that holds customers’ stablecoins may pass earnings along as rewards. AP named Coinbase and Robinhood as examples of exchanges offering such programs.

Does the rule create a blanket exception for rewards?

No. The OCC declined to create a broad safe harbor for rewards or to define “interest” and “yield” in the final rule. Instead, the agency says it will apply the law to the facts and circumstances of each arrangement. It also retains authority to address evasion of the issuer payment ban.

That leaves an important distinction: a platform’s reward is not automatically prohibited simply because it resembles interest, but labeling a payment a reward does not settle whether it violates the law. The rule says an issuer cannot evade the ban by using an agent to make a payment on its behalf. Whether a particular exchange program falls within the prohibition depends on how it is funded, arranged and connected to the issuer and the customer’s stablecoin activity.

What changes when the rule takes effect?

The OCC’s rule turns the GENIUS Act’s issuer restriction into part of the federal framework for payment stablecoin companies under its jurisdiction. It does not promise that every current or future exchange rewards program will qualify. The agency said it will assess the rule in practice as issuers begin operating under it.

For now, issuers remain barred from paying holders yield tied solely to holding, using or retaining their coins, while exchange rewards remain subject to case-by-case scrutiny. The next point to watch is how the OCC applies that distinction when the rule takes effect in January 2027.

References

• Federal Register’s OCC final rule — federalregister.gov
• Associated Press report on the OCC decision — apnews.com