Key Points
- Banking groups have condemned the OCC’s final regulations implementing the GENIUS Act’s stablecoin provisions.
- A proposed safeguard that would have presumed third-party yield arrangements violated the law was eliminated from the final rule.
- Banking advocates argue issuers can now circumvent the yield ban by offering rewards through partners and affiliates.
- Crypto industry representatives praised the removal, while traditional banking groups expressed concern.
- The GENIUS Act becomes operational in January 2027, with additional rules from the Federal Reserve and Treasury Department forthcoming.
The American Bankers Association (ABA) has voiced strong objections to newly released regulations from the Office of the Comptroller of the Currency (OCC) governing payment stablecoins. The banking trade organization claims the regulatory framework contradicts congressional objectives.
The OCC unveiled its final regulations implementing the GENIUS Act, establishing standards for payment stablecoin issuance and custodial services.
According to a statement issued Wednesday, the ABA acknowledged the final regulations contained “several positive steps.” Nevertheless, the organization expressed significant concerns regarding provisions addressing stablecoin yield arrangements.
Regulatory Agency Eliminates Proposed Yield Protection
The GENIUS Act explicitly prohibits payment stablecoin issuers from distributing yield to holders. The OCC’s initial proposal included a provision that would have created a presumption that specific third-party structures violated this prohibition.
This safeguard did not appear in the final regulatory text. The ABA contends this omission enables issuers to distribute rewards through intermediary relationships.
“The final rule removes the OCC’s originally proposed safeguards that would have addressed indirect arrangements involving affiliates, exchanges and other distribution partners,” the ABA stated.
The organization further argued that “payment stablecoin issuers can provide economically equivalent yield while technically avoiding the statutory prohibition.” The ABA also highlighted that the OCC rejected implementing a comprehensive presumption against structures intended to circumvent the ban.
According to the ABA, these regulatory gaps “risk undermining the distinction Congress drew between payment stablecoins and traditional bank deposits.” The group cautioned this could jeopardize the deposit base banks rely upon for lending activities.
Divergent Perspectives Among Industry Organizations
The ABA’s position did not receive universal support from industry stakeholders. The Blockchain Association, representing cryptocurrency businesses, endorsed the OCC’s final approach.
The Blockchain Association stated the OCC brought “the final rule more closely in line with the statutory text.”
The Bank Policy Institute, another banking trade organization, generally aligned with the ABA’s concerns. It characterized “the decision to omit the yield presumption replaces clarity with ambiguity.”
The Bank Policy Institute also warned that the modification “puts the banking system and its customers at risk of deposit flight.”
Rewards programs for stablecoin holders emerged as a contentious topic throughout the GENIUS Act’s legislative process, which concluded with passage in July 2025. The matter continues to generate discussion in deliberations surrounding separate legislation.
The companion bill, known as the Digital Asset Market Clarity Act, would establish regulatory frameworks for cryptocurrency market structure. Legislative progress has stalled following an unsuccessful procedural vote in the Senate last month.
The OCC completed its rulemaking process in advance of the GENIUS Act’s January 2027 effective date. Additional federal agencies, including the Federal Reserve and the Treasury Department, are anticipated to publish their own stablecoin regulations under the statute.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
