TLDR
- The American Bankers Association criticized the OCC’s final GENIUS Act rules on stablecoin issuance and custody.
- The OCC dropped a proposed provision that would have presumed certain third-party yield arrangements break the law.
- The ABA says issuers can now offer yield-like rewards through affiliates and exchanges while avoiding the ban.
- The Blockchain Association backed the change, while the Bank Policy Institute sided with the ABA.
- The GENIUS Act takes effect in January 2027, with Federal Reserve and Treasury rules still expected.
The American Bankers Association (ABA) has criticized new rules from the Office of the Comptroller of the Currency (OCC) on payment stablecoins. The group said the regulator’s approach goes against what Congress intended.
The OCC recently finalized its rules for carrying out the GENIUS Act. The rules cover how payment stablecoins are issued and held in custody.
In a statement released Wednesday, the ABA said the final rules included “several positive steps.” However, the group remained critical of provisions related to stablecoin yield.
OCC Drops Proposed Yield Safeguard
The GENIUS Act bans payment stablecoin issuers from paying yield. The OCC had proposed a rule that would have presumed certain third-party arrangements broke that ban.
That provision was removed from the final version. The ABA said this change opens a path for issuers to offer rewards through partners.
“The final rule removes the OCC’s originally proposed safeguards that would have addressed indirect arrangements involving affiliates, exchanges and other distribution partners,” the ABA said.
The group added that “payment stablecoin issuers can provide economically equivalent yield while technically avoiding the statutory prohibition.” It also noted the OCC declined to adopt a broader presumption against arrangements designed to get around the ban.
The ABA said these gaps “risk undermining the distinction Congress drew between payment stablecoins and traditional bank deposits.” It warned this could threaten the funds banks use to make loans.
Industry Groups Split on the Change
Not every group agreed with the ABA. The Blockchain Association, which represents crypto companies, supported the OCC’s decision.
The Blockchain Association said the OCC brought “the final rule more closely in line with the statutory text.”
The Bank Policy Institute, another banking advocacy group, largely sided with the ABA. It said “the decision to omit the yield presumption replaces clarity with ambiguity.”
The Bank Policy Institute added that the change “puts the banking system and its customers at risk of deposit flight.”
Stablecoin rewards were a key point of debate before and after the GENIUS Act passed Congress in July 2025. The issue is still drawing attention in talks over another bill.
That bill is the Digital Asset Market Clarity Act, which would set rules for the crypto market’s structure. It is currently stalled after a procedural vote failed in the Senate last month.
The OCC finalized its rules ahead of the GENIUS Act’s implementation in January 2027. Other agencies, including the Federal Reserve and the Treasury, are expected to release their own rules on stablecoins under the law.
