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

The Office of the Comptroller of the Currency (OCC) has finalized a rule that bans stablecoin issuers from paying interest to holders but leaves some rewards paid through crypto platforms open to case-by-case review. The distinction matters because exchanges such as Coinbase may be able to offer returns to customers even as stablecoin issuers cannot pay them directly. The OCC’s final rule, published in the Federal Register, takes effect Jan. 18, 2027.

What does the rule ban for stablecoin issuers?

It bars issuers from paying interest or yield to holders solely because they hold, use or keep a payment stablecoin. A stablecoin is a cryptocurrency designed to maintain a steady value, often against the U.S. dollar. The rule implements the GENIUS Act, signed into law on July 18, 2025, according to the OCC.

The ban applies whether the payment is in cash, tokens or another form of value. The OCC also says an issuer cannot get around the rule by paying an agent to make a prohibited payment on its behalf. It will look at what an arrangement does, not just what a company calls it.

Can an exchange still pay customers rewards?

Possibly, but the rule does not give exchanges a blanket approval. The OCC removed a proposed presumption that certain deals between issuers and related third parties would count as prohibited issuer payments. Instead, it says payments through an intermediary depend on the facts: they may be tied solely to holding or keeping a stablecoin, or may be made partly for other reasons.

That leaves room for some platform rewards, while allowing the OCC to pursue arrangements it sees as evading the ban. The agency says it retains that authority. It also says transaction-based payments are not prohibited if they are not interest or yield, or are not made solely because someone holds, uses or keeps a stablecoin.

Are existing rewards programs protected?

No. The OCC says programs that began before the GENIUS Act will be assessed under the same standard as newer programs. It declined to create a safe harbor, so the age of a reward program alone does not settle whether it is allowed.

The Associated Press reported that banks have warned rewards could pull deposits from the banking system and reduce lending. The OCC’s rule does not decide how much money might move. It sets the legal test for issuer-linked payments and leaves the treatment of particular platform rewards to future reviews.

Sources and documents

• OCC’s final rule, published in the Federal Register — federalregister.gov
• Associated Press reported — apnews.com