The Treasury Department's Office of the Comptroller of the Currency (OCC) released its final rule on Wednesday, implementing the GENIUS stablecoin act that became law last year. The rule has reignited tensions between banks and crypto platforms, particularly over stablecoin rewards, which allow users to earn interest on deposited funds.
The final rule differs from its initial proposal by removing a presumption that certain third-party stablecoin reward arrangements could be unlawful. This change has drawn criticism from the American Bankers Association (ABA), which argues that the rule undermines Congress's intent to protect local lending and distinguish stablecoins from traditional bank deposits.
ABA CEO Rob Nichols stated that the rule's gaps risk economic harm by allowing deposit flight and threatening funds used for loans. Meanwhile, the Blockchain Association praised the rule, saying it aligns with statutory text and provides clear standards for issuers, fostering innovation and competition under federal oversight.
Investment bank TD Cowen viewed the rule as negative for banks, citing uncertainty until courts rule on its legality. The firm also noted the risk of future regulatory shifts depending on the outcome of the 2028 presidential election.