OCC rule leaves crypto exchanges room to offer stablecoin rewards

The Office of the Comptroller of the Currency (OCC) finalized a stablecoin rule on Oct. 21 that leaves crypto exchanges room to offer customers interest-like rewards, while issuers remain barred from paying holders directly. The Associated Press report says platforms such as Coinbase and Robinhood may pass along earnings from stablecoins they hold. That matters because the new rule did not impose the broader ban on these programs sought by banking groups.

Who can pay rewards under the rule?

Stablecoin issuers cannot pay interest to people just for holding their coins, but exchanges may offer rewards tied to earnings on those coins, according to the AP. The OCC’s final rule notice implements the GENIUS Act, the federal law that created a framework for payment stablecoins. Stablecoins are tokens designed to hold a steady value, often around $1.

The distinction is between the issuer and the platform that holds or trades the token. Issuers such as Circle are prohibited from paying holders directly. Exchanges such as Coinbase and Robinhood can pass earnings to customers as rewards, but the OCC will assess those arrangements case by case, the AP reported. The rule takes effect Jan. 18, 2027.

Why did banks want tighter limits?

Stablecoin reserves can include bank deposits and U.S. Treasury securities, which earn interest. Crypto firms have argued that some of those earnings can be shared with customers. Banks say higher crypto yields could draw money away from bank accounts and reduce funds available for lending, the AP reported.

The American Bankers Association said the OCC decision threatens funds banks use to make loans. The OCC’s rule leaves exchanges able to offer rewards, while keeping the law’s direct ban on issuer payments. It does not guarantee that every exchange program will be allowed: the case-by-case review leaves room for regulators to assess individual arrangements.

When does the change take effect?

The rule and the GENIUS Act take effect Jan. 18, 2027, the OCC said. The agency’s rule also covers stablecoin reserves, redemption, risk management and supervision. It says anti-money-laundering and sanctions requirements will come in a separate rulemaking with the Treasury Department.

For customers, the immediate point is that exchange rewards may continue under the final rule, but they are not the same as bank interest. The AP notes that crypto holdings do not have an equivalent to federal deposit insurance. The OCC’s case-by-case approach means the details of a rewards program still matter.

Sources and documents

• Associated Press report — apnews.com
• OCC’s final rule notice — occ.treas.gov