OCC leaves crypto platform stablecoin rewards open to review

The Office of the Comptroller of the Currency (OCC) finalized its GENIUS Act rule on stablecoins, leaving crypto platforms able to offer interest-like rewards while barring issuers from paying interest directly to holders. The Associated Press report says the agency’s approach preserves rewards offered by exchanges such as Coinbase and Robinhood.

For stablecoin users, rewards remain possible through a platform, but the rule does not guarantee any particular program will be allowed.

What does the rule allow exchanges to do?

The GENIUS Act prohibits permitted stablecoin issuers from paying interest or yield to holders solely for holding, using or retaining the stablecoin. The OCC’s final rule, published in the Federal Register on Oct. 23 and effective Jan. 18, 2027, keeps that restriction in place.

Platforms that trade or hold stablecoins may still offer customers rewards, potentially funded from earnings on the assets backing those tokens. The OCC’s final rule does not give these arrangements a blanket approval or safe harbor: the agency says it will assess whether specific activities are permissible case by case.

Why did the final rule leave rewards open?

The OCC removed a proposed rebuttable presumption that could have treated certain issuer arrangements with third parties as prohibited yield payments. The agency said that presumption risked capturing permissible arrangements as well as impermissible ones.

That change does not mean every rewards program is cleared. The OCC says it retains authority to address evasion of the law’s yield prohibition and will monitor arrangements through issuer applications and ongoing supervision. Rewards programs that existed before the GENIUS Act will be evaluated under the same standard as newer programs.

What should stablecoin holders expect?

Users may continue to see rewards offered by platforms, but the rate and availability depend on each platform’s program. AP reported that Coinbase offered up to 3.5% on USDC balances; that is a reported offering, not a rate set or guaranteed by the OCC.

There is also a protection difference to keep in mind. Stablecoin balances do not carry the equivalent of Federal Deposit Insurance Corp. deposit insurance, AP reported, so a reward that resembles bank interest does not make the underlying crypto holding a bank deposit.

Banks have argued that higher crypto yields could pull deposits away from lenders and reduce their capacity to make loans. The OCC rule settles the immediate regulatory question for its framework: direct issuer yield stays prohibited, while third-party rewards remain subject to case-specific review.

Sources

• Associated Press report — apnews.com
• OCC’s final rule — govinfo.gov