OCC leaves crypto exchanges room to offer stablecoin rewards

The Office of the Comptroller of the Currency finalized a stablecoin rule on Oct. 21, 2026, leaving crypto exchanges room to offer customers interest-like rewards while prohibiting issuers from paying yield directly to coin holders. The rule sets up a case-by-case review of reward arrangements under the GENIUS Act.

• The GENIUS Act was enacted on July 18, 2025.
• The final rule takes effect Jan. 18, 2027.
• Coinbase offered up to 3.5% on USDC balances, AP reported; the average traditional savings account paid 0.38%.

What does the rule say about stablecoin rewards?

The OCC’s final rule implementing the GENIUS Act bars permitted stablecoin issuers from paying interest or yield to holders solely because they hold, use or keep the coin. It does not, however, categorically ban rewards paid by exchanges or other third parties.

The Associated Press reported that exchanges such as Coinbase and Robinhood can pass along earnings from stablecoins to customers, subject to case-by-case review. Stablecoins are digital 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.

Why did the OCC drop its proposed presumption?

The proposal would have presumed that certain arrangements involving issuers’ affiliates or related third parties violated the yield ban. The OCC removed that presumption from the final rule, saying it could sweep in permissible arrangements while missing prohibited ones.

The agency will instead monitor arrangements during issuer application reviews and ongoing supervision. It says it will act when it identifies transactions that violate or evade the ban, and may issue further guidance as it gains experience with the market. Dropping the presumption does not create a blanket safe harbor: the OCC says existing rewards programs will be evaluated by the same standard as newer ones.

What is at stake for banks and customers?

Banking groups have argued that stablecoin rewards could draw deposits away from banks and reduce the money available for lending, according to the Associated Press report. The yield gap helps explain the dispute: the figures AP cited put Coinbase’s top USDC reward well above the average savings account rate.

For customers, the distinction is between a reward from a crypto platform and interest paid by the stablecoin’s issuer. The rule keeps the issuer ban in place, while leaving individual third-party arrangements for the OCC to assess. The OCC says the rule covers reserves, redemptions, risk management and custody as well as the yield prohibition; it applies to entities under its jurisdiction.

The GENIUS Act and the OCC’s final rule take effect on Jan. 18, 2027. Until then, the agency says it will continue to review issuer arrangements and take action where it finds evasion. That leaves exchanges room to offer rewards, but the outcome for a particular program will depend on its facts.

Sources and documents

• final rule implementing the GENIUS Act — occ.gov
• Associated Press report — apnews.com