The Office of the Comptroller of the Currency (OCC) finalized its rule implementing the GENIUS Act for stablecoins, leaving flexibility for third-party yield arrangements. While the rule maintains a ban on direct yield payments from issuers to stablecoin holders, it removes a proposed presumption that would have treated certain third-party rewards as prohibited. Instead, the OCC will assess yield arrangements based on individual "facts and circumstances."
Treasury Secretary Scott Bessent hailed the final rule as a landmark achievement, stating that the GENIUS Act "marks a watershed moment in American finance." The rule aims to provide a clear framework for stablecoin innovation while addressing concerns about deposit flight from traditional banks. The banking industry has warned that stablecoin yield could divert $6.6 trillion in deposits away from regulated institutions.
The OCC acknowledged that some third-party arrangements might be permissible, depending on the specifics. Payments made solely for holding or using a stablecoin would likely remain prohibited, but other arrangements could be allowed. Comptroller Jonathan Gould emphasized that the rule advances "American leadership in digital assets" with strong standards for reserve backing and risk management.
The Independent Community Bankers of America recently sued the OCC over its interpretation of the national trust charter, which has allowed new special-purpose banks to be approved. A 2024 Supreme Court ruling strengthens the plaintiffs' case.