OCC rule leaves crypto platforms free to offer stablecoin rewards

Stablecoin issuers were already barred from paying holders interest under the GENIUS Act. On Oct. 21, the Office of the Comptroller of the Currency finalized rules that leave crypto exchanges able to pass earnings on to customers as interest-like rewards, case by case, according to the OCC’s announcement of its final rule and Associated Press reporting.

The distinction matters if you hold stablecoins through a platform: the issuer cannot pay you interest just for holding its coin, but an exchange that holds or trades the coin may share earnings with you. The rule does not ban that practice outright, though the OCC says platforms can do it on a case-by-case basis.

Who can pay rewards under the rule?

Stablecoin issuers such as Circle remain prohibited from paying interest directly to coin holders, AP reported. Exchanges such as Coinbase and Robinhood can offer interest-like rewards by passing along earnings on the stablecoins they hold. Stablecoins are designed to hold a steady value, typically $1, and their backing can include bank deposits and U.S. Treasuries that earn interest.

The OCC rule implements the GENIUS Act, signed into law in 2025, and covers permitted payment stablecoin issuers and foreign issuers under the agency’s jurisdiction, as well as some custody activities by OCC-supervised entities. The OCC says the rule and the act take effect Jan. 18, 2027.

Why were banks seeking tighter limits?

Banks say rewards could draw savings away from deposits, reducing the funds banks use to lend. Crypto platforms can offer higher yields: AP reported that Coinbase offered up to 3.5% on USDC balances, while the FDIC’s average traditional savings account rate was 0.38%. Those figures show why the reward structure has become a point of dispute, but they do not predict how much money customers will move.

The American Bankers Association said the OCC decision would threaten funds used for lending. Consumer groups have raised a different concern: customers may mistake crypto rewards for bank-account interest, even though crypto holdings do not have equivalent deposit insurance. For you, the practical distinction is that a reward may resemble bank interest while carrying different protections.

Sources

• OCC’s announcement of its final rule — comptrollerofthecurrency.gov
• Associated Press reporting — apnews.com