OCC leaves crypto exchange stablecoin rewards in place

The Office of the Comptroller of the Currency said on October 21 that crypto exchanges can continue offering customers interest-like rewards on stablecoins under a new rule, leaving the practice to be assessed case by case. The rule implements the GENIUS Act, which bars stablecoin issuers from paying interest directly to holders.

• Rule announced: October 21, 2026
• Effective date: January 18, 2027
• Coinbase USDC rewards: up to 3.5%, according to AP
• Average traditional savings account yield: 0.38%, according to AP

The OCC’s final rule announcement sets requirements for payment stablecoin issuers and certain custody activities. The Associated Press reported that exchanges such as Coinbase and Robinhood may pass along earnings from stablecoins they hold, while issuers such as Circle remain prohibited from paying holders interest directly.

Who can pay rewards under the rule?

Exchanges and other platforms may offer rewards, but the OCC will assess those arrangements case by case, AP reported. The rule does not give every program an automatic safe harbor.

The distinction is between the issuer of a stablecoin and a platform that trades or holds it. A stablecoin is a cryptocurrency designed to keep a steady value, often around $1. The GENIUS Act bars a permitted issuer from paying a holder interest or yield solely because the holder keeps, uses or retains the coin.

In practice, stablecoin reserves can include bank deposits and U.S. Treasury securities that earn interest. Crypto firms have sought to share some of those returns with customers through reward programs. The OCC’s approach leaves those arrangements possible when offered through platforms, while the direct payment ban on issuers remains.

What did the OCC decide about stablecoin yield?

The final rule takes effect on January 18, 2027, and covers issuers under OCC jurisdiction, including certain nonbank firms approved as federal qualified payment stablecoin issuers. The OCC bulletin on the rule says it sets standards for reserves, redemptions, risk management, audits and supervision.

OCC did not define “interest” or “yield” in the rule, according to its published regulation. Instead, it said those terms will be interpreted based on the facts and circumstances. That leaves room for regulators to examine how a particular reward is funded and structured.

The rule implements the GENIUS Act, enacted July 18, 2025, which established a federal framework for payment stablecoins. The OCC said other provisions on anti-money laundering and sanctions will be addressed in a separate rulemaking with the Treasury Department.

Why are banks concerned about the decision?

Banking groups have argued that stablecoin rewards could draw deposits away from banks and reduce funds available for lending. AP reported that the American Bankers Association said the OCC’s decision threatens funds banks use to make loans.

The debate turns partly on the difference between a crypto reward and a bank deposit. Stablecoin holdings do not have an equivalent to Federal Deposit Insurance Corp. deposit insurance, AP reported. For customers, a reward rate can therefore look like savings interest while carrying different protections.

AP cited Coinbase rewards of up to 3.5% on USDC balances and an FDIC-reported average savings yield of 0.38%. Those figures illustrate the rate gap at the time of the report; they do not establish that every customer or stablecoin earns those returns.

Sources and documents

• OCC’s final rule announcement — occ.treas.gov
• OCC bulletin on the rule — occ.gov