OCC Drops Proposed Presumption in Stablecoin Yield Rule

The Office of the Comptroller of the Currency removed a proposed presumption against certain third-party stablecoin reward arrangements in its final rule under the GENIUS Act, leaving such arrangements subject to case-by-case review. The rule retains the OCC’s authority to act against attempts to circumvent the ban on stablecoin issuers paying yield and is scheduled to take effect January 18, 2027. The change concerns rewards paid through intermediaries, such as exchanges or other third parties, rather than interest paid directly by a stablecoin issuer. The OCC’s proposal would have presumed certain arrangements violated the statutory restriction unless justified otherwise. The final rule drops that presumption and instead calls for individual assessments. The American Bankers Association said the change could allow returns economically similar to yield to be delivered indirectly while avoiding the statutory prohibition. The association argued that this risks weakening the distinction between payment stablecoins and bank deposits, and warned that bank funding supports lending. Those are the ABA’s concerns, not reported effects of the final rule. The Blockchain Association...