OCC rule leaves stablecoin rewards open for crypto exchanges

The Office of the Comptroller of the Currency (OCC) finalized rules for stablecoin issuers on Oct. 21, leaving crypto exchanges room to offer customers rewards tied to stablecoins. The decision keeps a source of income for crypto customers in play, while banks argue those rewards could pull deposits away from lenders. The Associated Press report says exchanges such as Coinbase and Robinhood may pass along earnings from stablecoins on a case-by-case basis.

What does the OCC rule say about stablecoin rewards?

The rule bars permitted stablecoin issuers from paying interest or yield to holders solely because they hold, use or keep the stablecoin. Stablecoins are crypto tokens designed to hold a steady value, often one U.S. dollar. Their reserves can include bank deposits and U.S. Treasury securities, which earn interest.

The OCC did not create a blanket approval for exchange rewards. In its final rule, it removed a proposed presumption that certain issuer deals with affiliates or other related firms would violate the ban. Instead, the agency says it will review arrangements as part of issuer applications and ongoing supervision. It can act against deals it finds violate or evade the ban, and may issue more guidance as it gains experience.

Can exchanges still pay customers a return?

For now, the OCC’s approach leaves some exchange rewards possible, depending on how each program works. The AP reports that platforms may pass on earnings from the assets backing stablecoins, while the issuers themselves remain barred from paying holders yield simply for holding their coins.

The distinction matters because customers may see a reward as similar to bank interest, even though crypto accounts do not have the same deposit insurance as bank accounts. The 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.

Why are banks challenging these programs?

Banks say higher stablecoin rewards could draw money from bank deposits and reduce funds available for lending. The AP reported that the American Bankers Association criticized the OCC’s decision, arguing it could threaten money banks use to make loans. Consumer advocates have also raised concerns that customers could mistake crypto rewards for insured bank interest.

The OCC rule implements the GENIUS Act, signed into law on July 18, 2025. The rule and the act take effect on Jan. 18, 2027, giving the agency time to review applications and monitor how reward programs operate before the framework begins.

Sources

• Associated Press report — apnews.com
• final rule — occ.treas.gov