OCC rule leaves crypto platforms room to pay stablecoin rewards

On Oct. 21, the Office of the Comptroller of the Currency said crypto platforms may continue offering interest-like rewards on stablecoin balances case by case, leaving exchanges such as Coinbase and Robinhood room to pay customers under the new GENIUS Act rules, according to the Associated Press report.

• Coinbase advertises rewards of up to 3.5% on USDC balances, AP reported.
• The average US savings account yield is 0.38%, according to the latest FDIC figures cited by AP.
• The OCC’s final rule and the GENIUS Act take effect Jan. 18, 2027.

The distinction is between the company that issues a stablecoin and a platform that trades or holds it. The new rule keeps the ban on stablecoin issuers paying interest to people who hold their coins, while leaving platforms room to pass earnings to customers as rewards.

Who can pay rewards under the new rule?

Crypto exchanges and other platforms may offer rewards, while stablecoin issuers remain barred from paying holders interest, AP reported. Stablecoins are cryptocurrencies designed to keep a steady value, usually around $1. Issuers back them with assets such as bank deposits and US Treasury securities, which can earn interest.

The OCC’s announcement of its final GENIUS Act rule says it sets requirements for permitted stablecoin issuers and some custody activities overseen by the agency. The OCC said the rule covers the regulations it must issue under the law, except for requirements on anti-money laundering, sanctions and the Bank Secrecy Act, which will come in a separate rulemaking with the Treasury Department.

The GENIUS Act created the federal framework for payment stablecoins. Under the arrangement described by AP, issuers such as Circle cannot pay holders interest directly, but exchanges such as Coinbase and Robinhood can pass along earnings as rewards. That leaves a route for customers to receive a return without the issuer paying them directly.

Why were banks seeking tighter limits?

Banking groups argue that crypto rewards could draw customer deposits away from banks and reduce the money available for lending. The American Bankers Association said the OCC’s decision would threaten funds banks use to make loans, AP reported.

AP cited Coinbase’s USDC rewards rate of up to 3.5% and an average savings account yield of 0.38%. The difference helps explain why banks have pressed for tighter restrictions: customers may choose a platform offering higher rewards over a traditional savings account. AP reported that banks warned stablecoin programs could drain trillions of dollars in deposits, though that figure is a warning about a potential outcome, not a measured amount lost.

For now, the OCC’s approach leaves platforms room to compete on rewards while keeping the direct payment ban in place for issuers. The agency’s rule is not yet in force; it takes effect on Jan. 18, 2027, alongside the GENIUS Act.

What should stablecoin holders keep in mind?

A reward on a crypto platform is not the same as interest on an insured bank deposit. AP reported that crypto accounts have no equivalent of Federal Deposit Insurance Corporation protection. The OCC’s announcement describes rules for issuer reserves, redemption and risk management, but does not say platform reward balances receive deposit insurance.

That gap is part of the consumer debate. Some advocates worry customers may see a stablecoin reward as similar to a bank account return without having the same protections. The OCC said it will monitor how the industry develops and adjust its supervisory framework as needed.

Sources and documents

• Associated Press report — apnews.com
• announcement of its final GENIUS Act rule — occ.treas.gov