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OCC rule leaves crypto exchange stablecoin rewards possible

The OCC finalized its GENIUS Act stablecoin rule, keeping direct issuer interest barred while leaving crypto exchanges room to offer customer rewards.

Uruguay Can Editorial

OCC rule leaves crypto exchange stablecoin rewards possible

Stablecoin issuers were already barred from paying holders yield under the GENIUS Act; now the Office of the Comptroller of the Currency has finalized rules that leave exchange rewards possible. The OCC’s final rule, published October 23, implements the law for stablecoin issuers it supervises and takes effect January 18, 2027.

What can exchanges still offer?

Crypto platforms may pass earnings from stablecoins to customers as rewards, according to the Associated Press’s report on the OCC rule. That leaves companies such as Coinbase and Robinhood able to offer interest-like returns, while Circle and other issuers remain prohibited from paying interest directly to people who hold their coins.

The distinction matters because stablecoins are backed by assets such as bank deposits and U.S. Treasuries, which earn interest. Platforms can offer customers some of those earnings as rewards, though the final rule does not give every program automatic approval.

How will the OCC assess rewards?

The agency removed a proposed rebuttable presumption that would have treated certain payments routed through an issuer’s affiliate or related third party as prohibited yield. Instead, the OCC says it will review arrangements through issuer applications and ongoing supervision, then act if it identifies violations or attempts to evade the ban.

That means you should read the rule as leaving room for exchange rewards, with the details of each arrangement still relevant. The OCC declined to create a general safe harbor for rewards programs, including those that existed before the GENIUS Act was enacted.

Why did banks oppose the approach?

Banking groups have argued that higher crypto yields could draw deposits away from banks and reduce their capacity to lend. The OCC says it will monitor how the stablecoin market develops and may issue further guidance as it gains experience; for now, the rule preserves the issuer ban while leaving the treatment of third-party rewards to case-specific review.

Sources