OCC rule leaves stablecoin rewards open for crypto exchanges

3.5% is the top yield Coinbase offers on some USDC balances, according to the Associated Press, and the OCC’s new stablecoin rule leaves such exchange rewards in play. That means crypto platforms may continue passing some stablecoin earnings to customers, even as issuers remain barred from paying holders interest or yield.

The Office of the Comptroller of the Currency announced its final rule on October 21 to implement the GENIUS Act, the federal stablecoin law signed in 2025. The Associated Press report says the rule allows exchanges such as Coinbase and Robinhood to pass along earnings on a case-by-case basis.

Who can pay rewards under the OCC rule?

Stablecoin issuers cannot pay holders interest or yield solely for holding, using or retaining their coins. The rule applies to issuers under OCC jurisdiction, while platforms that trade and hold stablecoins may offer interest-like rewards, according to the AP.

Stablecoins are cryptocurrencies designed to hold a steady value, often $1. Their reserves can include bank deposits and U.S. Treasury securities, which earn interest. Crypto firms have sought to share some of those earnings with customers who keep stablecoins on their platforms.

The distinction is between an issuer’s direct payment and a platform’s reward. The rule does not give every exchange a blanket approval: regulators will assess arrangements case by case, the AP reported.

What did the OCC change in the final rule?

The OCC removed a proposed “rebuttable presumption” that could have treated certain arrangements as prohibited yield payments unless the issuer showed otherwise. The final rule instead says the agency will monitor issuer arrangements through applications and ongoing supervision, and act against transactions it finds violate or evade the ban.

In the final rule published in the Federal Register, the OCC says payments made for reasons beyond holding, using or retaining a stablecoin are not barred by the GENIUS Act’s yield prohibition. Whether a payment qualifies depends on the facts. The OCC also says it will examine the substance of an arrangement if it suspects another stated purpose is being used to get around the prohibition.

The rule does not create a safe harbor for existing rewards programs. Programs started before the GENIUS Act will be assessed under the same standard as newer ones, the OCC says.

When does the rule take effect, and what is at stake?

The rule takes effect on January 18, 2027, along with the GENIUS Act, the OCC said. Until then, the OCC says it will monitor issuer arrangements and may issue more guidance as the stablecoin market develops.

Banks have argued that stablecoin rewards could draw deposits away from lenders and reduce their capacity to make loans. The AP cited Coinbase’s USDC yield of up to 3.5%, compared with a 0.38% average rate for traditional savings accounts in the latest Federal Deposit Insurance Corp. figures.

The American Bankers Association said the OCC decision threatens funds banks use to make loans. Consumer groups have raised a different concern: customers could mistake crypto rewards for bank account interest, even though stablecoin holdings do not have the same federal deposit insurance protection.

For you, the rule means platform rewards can remain available, but the rate and continued availability depend on the provider’s program. The OCC’s case-by-case approach leaves room for rewards while preserving its authority to challenge arrangements it views as prohibited or evasive.

Sources

• Associated Press report — apnews.com
• final rule published in the Federal Register — govinfo.gov