OCC Leaves Stablecoin Rewards Open to Crypto Exchanges

The Office of the Comptroller of the Currency has left crypto exchanges room to offer rewards tied to stablecoin holdings, while keeping a ban on issuers paying yield directly to coin holders. The final rule, published this week, drops a proposed presumption that some issuer and third-party reward arrangements violated that ban. That leaves platforms such as Coinbase and Robinhood with more room than the proposal would have allowed, but no blanket clearance for every program. The Associated Press’s report on the OCC decision says exchanges can pass along earnings on stablecoins to customers on a case-by-case basis.

What changed from the OCC’s proposal?

The OCC removed a rebuttable presumption that would have treated certain arrangements between stablecoin issuers and affiliates or related third parties as prohibited yield payments. Under the proposal, the presumption would have applied where an issuer had an arrangement to pay a third party and that party, in turn, paid holders solely for holding, using or retaining the issuer’s stablecoin. The final rule no longer automatically treats those arrangements as violations.

The change stops short of removing the underlying restriction. The GENIUS Act bars permitted payment stablecoin issuers from paying interest or yield to holders solely in connection with holding, using or retaining the coin. In the final rule published in the Federal Register, the OCC says it will assess arrangements based on their facts and circumstances, monitor issuers through applications and ongoing supervision, and take action if it finds a violation or evasion. The rule takes effect Jan. 18, 2027.

How does the rule compare with bank savings?

Stablecoins are designed to hold a steady value, typically one U.S. dollar, and their reserves can earn interest in bank deposits or Treasury securities. Exchanges can use rewards to share some of that return with customers, giving them a way to earn on a stablecoin balance. AP reported that Coinbase offered up to 3.5% on USDC balances, compared with a 0.38% average yield for traditional savings accounts, citing the latest Federal Deposit Insurance Corp. figures.

That potential return is the point of conflict with banks. Banking groups argue that higher-yielding crypto products could draw deposits away from banks and reduce funds available for lending. The American Bankers Association said the OCC decision threatens funds banks use to make loans. For customers, the trade-off is that a crypto reward may offer a higher rate, but stablecoin holdings do not carry the equivalent of federal deposit insurance on bank accounts.

What could still change how rewards work?

The OCC says the stablecoin market is still developing and that a presumption could sweep in permissible arrangements while missing other problematic ones. It chose supervision and case-by-case enforcement for now, with the possibility of a later rulemaking to clarify the yield prohibition as the agency gains experience. The result preserves more flexibility for exchanges than a broad presumption would have, while leaving issuers and their partners exposed to scrutiny if a program is judged to route prohibited yield indirectly.

The next signals are how the OCC evaluates issuer applications and reward arrangements in practice, whether it publishes guidance after enforcement decisions, and whether Congress changes the statutory framework. Those decisions will determine whether exchange rewards remain a practical route for customers to earn on stablecoins or face tighter limits over time.

Sources and documents

• The Associated Press’s report on the OCC decision — apnews.com
• final rule published in the Federal Register — govinfo.gov