OCC leaves stablecoin exchange rewards to case-by-case review

The Office of the Comptroller of the Currency finalized rules on Oct. 21 to implement the GENIUS Act, leaving crypto exchanges able to offer stablecoin rewards subject to case-by-case review, the Associated Press reported. The rule takes effect Jan. 18, 2027, and sets requirements for stablecoin issuers under the OCC’s jurisdiction.

Stablecoins are designed to hold a steady value, often one U.S. dollar. Issuers can earn interest on assets backing those coins, while exchanges may pass some earnings to customers as rewards.

The rule leaves room for exchange rewards, but it does not create a blanket safe harbor for every program.

What does the OCC’s rule prohibit?

The GENIUS Act bars permitted payment stablecoin issuers from paying interest or yield to holders solely for holding, using or retaining their coins. The OCC’s final rule keeps that prohibition in place and applies it to retail and institutional holders alike.

The OCC also declined to define “interest” or “yield,” saying it will assess arrangements based on their facts and circumstances. A reward’s label alone does not determine whether it falls under the ban: the agency says it will look at the substance of a transaction and whether it was structured to evade the law.

Can exchanges still pay customers?

The OCC removed a proposed rebuttable presumption that could have treated certain issuer arrangements with affiliates or related third parties as violations. Instead, the agency will examine issuer arrangements during application reviews and ongoing supervision, and says it will act if it identifies violations or evasion, according to the OCC’s final-rule announcement.

That leaves exchange rewards possible, AP reported, but their treatment depends on how a particular program is funded and structured. The OCC did not publish a list of allowed programs or adopt a general safe harbor. It said it will evaluate arrangements individually.

What should stablecoin users watch?

For customers, rewards may continue to be offered, but the rule does not guarantee that a specific exchange program will remain available or qualify. The OCC says it will provide further guidance as it gains experience supervising the market; the rule also does not give stablecoin rewards the protections of a bank deposit.

AP reported that Coinbase offers up to 3.5% on USDC balances, compared with a 0.38% average yield for traditional savings accounts in the latest FDIC figures it cited. That gap helps explain the dispute: banking groups warn that competitive stablecoin returns could pull deposits from banks and reduce funds available for lending, while crypto platforms retain room to compete for customers.

Sources

• Associated Press reported — apnews.com
• OCC’s final-rule announcement — occ.treas.gov