OCC Finalizes Stablecoin Rules, Leaves Rewards to Case-by-Case Review

The Office of the Comptroller of the Currency finalized rules implementing the GENIUS Act, setting federal requirements for payment stablecoin issuers under its jurisdiction and leaving third-party reward arrangements subject to case-by-case review. The rules take effect January 18, 2027. The framework covers reserve assets, redemption obligations, risk management, supervision and certain custody activities. It applies to permitted issuers under OCC oversight, including qualifying nonbank and foreign issuers. The agency said the standards are intended to establish how covered institutions must operate under the law. The final rule retains the prohibition on issuers paying interest or yield solely for holding, using or retaining a payment stablecoin. But it removes a proposed presumption that certain affiliate or third-party reward arrangements would violate that ban. Instead, the OCC says it will assess arrangements individually and can act if they evade the statutory prohibition. The rule does not guarantee that any particular rewards program will be permitted. That distinction has drawn criticism from banking groups concerned that stablecoin rewards could encourage customers...