Banks Say OCC’s Final Stablecoin Rule Lets Crypto Platforms Keep Offering Yield

The Office of the Comptroller of the Currency published its final rule on Wednesday implementing the GENIUS Act, and the treatment of stablecoin rewards has revived the clash between banks and crypto firms. The law bars issuers from paying interest directly, but it is unclear whether outside platforms such as Coinbase can do so. The OCC’s earlier proposal presumed some issuer arrangements with outside partners could be unlawful. The final version drops that presumption. A regulatory official said cases would be handled one at a time.

Banks and Crypto Groups Clash Over Stablecoin Yield

American Bankers Association CEO Rob Nichols said the rule keeps yield available despite Congress’s intent to protect local lending. He warned it blurs the line between payment stablecoins and deposits, and said dealing with deposit flight after the damage is done is the wrong approach. The Blockchain Association disagreed. Its chief policy officer, Lindsay Fraser, said the rule gives issuers clear standards on reserves, redemption and risk, which should bring more innovation and more payments onshore.

Why Analysts See Legal Uncertainty Ahead

TD Cowen’s Washington research team, led by Jaret Seiberg, called the rule negative for banks because a case by case approach leaves doubt until courts weigh in. The team also noted that the winner of the 2028 presidential race could appoint a new Comptroller with a different view of what counts as evasion.