Banking Lobby Says OCC Stablecoin Rules Weaken Congress’s Yield Ban

The American Bankers Association is criticizing the Office of the Comptroller of the Currency after the agency finalized its rules for payment stablecoin issuance and custody under the GENIUS Act. The group praised several parts of the package but objected to how it treats yield. The OCC dropped an earlier proposal that would have presumed certain third party arrangements broke the law’s ban on paying yield. The ABA argues that this lets issuers offer economically similar returns through affiliates, exchanges and other distribution partners while technically staying within the statute. It also says the OCC refused to adopt a wider presumption against schemes built to get around the ban.

Why Banks Fear Stablecoin Yield and Deposit Flight

According to the ABA, these gaps blur the line Congress drew between payment stablecoins and ordinary bank deposits, which could threaten the funds banks rely on to make loans. The Bank Policy Institute largely agreed, saying that removing the presumption swaps clarity for ambiguity and raises the risk of deposit flight.

Crypto Industry Backs the Final Rule

The Blockchain Association took the opposite view, saying the final rule sits closer to the actual statutory text. Stablecoin rewards were a major point of debate when GENIUS passed in July 2025, and they remain contested as the Digital Asset Market Clarity Act sits stalled after a failed Senate procedural vote last month. The rules arrive ahead of the January 2027 implementation date, with the Federal Reserve and Treasury still expected to issue their own.