The Office of the Comptroller of the Currency (OCC) finalized regulations under the GENIUS Act on Wednesday, October 21, 2026, setting standards for stablecoin issuers. Effective January 18, 2027, the rules cover asset backing, customer exchange rights, safekeeping, and risk management. The OCC left room for stablecoin rewards, though it will review individual arrangements. Existing rewards programs won’t automatically comply with the new law.
Cryptocurrency platforms could attract customers with higher returns. Coinbase, for example, offers up to 3.5% on certain USDC balances, compared to an average savings account rate of 0.38%, according to FDIC figures. This could influence where customers keep their money, potentially affecting bank deposits and lending.
The American Bankers Association criticized the decision, arguing it threatens funding for local lending. Banks may need to raise savings rates or offer additional benefits to retain deposits, which could narrow their profit margins. Consumers should compare protections, as stablecoin holdings lack federal deposit insurance.
Implementation details are still pending. The OCC will announce when it begins accepting issuer applications, with anti-money-laundering and sanctions requirements to follow. Banks must now assess which customers might move funds and how to retain them without hurting lending profitability.