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

The Office of the Comptroller of the Currency issued a final rule on Oct. 21 that leaves crypto exchanges able to offer rewards tied to stablecoins, subject to case-by-case review. Stablecoins are tokens designed to hold a steady value, often pegged to the U.S. dollar.

For customers, rewards remain possible, but the rule does not guarantee any particular program will be allowed.

Does the rule let exchanges pay rewards?

It leaves room for them, but not blanket approval. The CoinDesk report on the OCC’s final rule says the agency will assess arrangements based on their facts and circumstances, and gives no safe harbor to rewards programs that existed before the GENIUS Act.

The law bars permitted stablecoin issuers from paying holders interest or yield solely for holding, using or retaining the tokens. The OCC’s rule distinguishes that ban from rewards offered through exchanges or other third parties, but the agency says an arrangement may still fall within the prohibition depending on how it works.

What could customers receive?

Exchanges may pass along some earnings associated with stablecoins, according to the Associated Press report on the rule. AP reported Coinbase offered up to 3.5% on USDC balances; that figure is an example of an available offer, not a rate set or guaranteed by the OCC.

In practice, customers need to check the terms of the specific platform and product. The rule does not set a standard reward rate, require exchanges to offer rewards or promise that a program will continue unchanged.

What does the OCC still need to decide?

The agency has not laid out examples that would show exactly when an exchange reward crosses the line into prohibited yield. Instead, it will apply the statute to each arrangement, leaving firms to assess how their programs are structured and what activities qualify for rewards.

The rule is scheduled to take effect Jan. 18. Until then, existing programs do not receive special protection simply because they predate the law, and the OCC’s case-by-case approach leaves their status subject to review.

The debate has consequences beyond crypto platforms. Banking groups argue that higher stablecoin rewards could draw deposits away from banks and reduce funds available for lending; the OCC’s rule leaves that competition in place while retaining the statutory ban on direct issuer payments to holders.

Sources

• CoinDesk report on the OCC’s final rule — coindesk.com
• Associated Press report on the rule — apnews.com