OCC leaves crypto exchange stablecoin rewards open case by case

The Office of the Comptroller of the Currency finalized its GENIUS Act stablecoin rule on Oct. 21, leaving crypto platforms able to offer some interest-like rewards while keeping a direct ban on issuers paying holders for holding, using or retaining stablecoins. The distinction matters for exchanges that share revenue tied to stablecoins with customers, but the rule does not grant those programs blanket approval: the OCC says it will judge arrangements on their facts and circumstances.

According to the Associated Press report, platforms including Coinbase and Robinhood can pass earnings from stablecoin holdings to customers as rewards. The OCC’s final rule takes effect Jan. 18, 2027. It implements the GENIUS Act, signed into law on July 18, 2025, which bars permitted payment stablecoin issuers from paying holders interest or yield solely in connection with holding, using or retaining their coins.

What did the OCC change from its proposal?

The agency dropped a proposed rebuttable presumption that would have treated certain arrangements involving issuers’ affiliates and related third parties as violations unless issuers could show otherwise. The final rule does not replace that presumption with a general safe harbor for exchange rewards. Instead, the OCC says it will review issuer arrangements during applications and ongoing supervision, apply the statute to the relevant facts, and retain authority to address evasion.

That leaves a meaningful boundary: a payment made by an issuer’s agent on the issuer’s behalf, solely because a customer holds a stablecoin, remains within the prohibition. An intermediary’s involvement alone does not settle the question; the OCC says some indirect payments may be made partly for other reasons, and their treatment depends on the circumstances. The rule also declines to presume that rewards programs already operating before the law are compliant.

Why is the line between issuers and exchanges contested?

Stablecoins are designed to hold a steady value, often around $1, and are backed by assets such as bank deposits and U.S. Treasuries that can earn interest. The crypto industry has sought to return some of those earnings to customers. Banks argue that attractive stablecoin yields could pull deposits from the banking system and weaken a source of funding for lending. The American Bankers Association said the OCC decision threatens funds banks use to make loans, AP reported.

The competing offers help explain the stakes. AP reported that Coinbase offered up to 3.5% yield on USDC balances, compared with a 0.38% average yield for traditional savings accounts, citing the latest FDIC figures. Those figures describe the gap at the time of the report; they do not establish how much money customers will move. Bank groups warn of deposit flight, while the OCC’s decision keeps the rewards question open rather than imposing the broader restriction banks sought.

What should customers and platforms watch next?

The first test will be how the OCC applies the rule as issuers seek approval and the agency supervises their arrangements. Its final text provides no list of permitted reward structures, so platforms face uncertainty over programs that connect issuer reserves, exchange balances and customer payments. A program’s label as a “reward” will not itself determine whether it falls within the ban.

Customers should also distinguish these offers from bank deposit interest. Crypto platforms do not provide the equivalent of FDIC deposit insurance, AP noted, so a higher advertised return comes with a different protection framework. The next signals are the OCC’s treatment of specific issuer-linked programs, any guidance it issues as the market develops, and whether Congress changes the GENIUS Act’s yield restriction.

Sources and documents

• Associated Press report — apnews.com
• OCC’s final rule — thefederalregister.org