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The Office of the Comptroller of the Currency (<a href="https://x.com/USOCC" rel="noopener noreferrer nofollow">@USOCC</a>) has finalized its first rule implementing the GENIUS Act, dropping a contested proposal that would have treated certain stablecoin reward arrangements as presumptively unlawful. The change is a relief for exchanges such as <a href="https://x.com/coinbase" rel="noopener noreferrer nofollow">@coinbase</a> (<a href="https://x.com/search?q=%24COIN&amp;src=cashtag_click" rel="noopener noreferrer nofollow">$COIN</a>) that pay rewards on stablecoin balances.
<cite>The OCC is the first regulator to finalize its GENIUS Act stablecoin rule, which it published on Wednesday.</cite><cite>The banking regulator said it will take effect on Jan. 18, 2027.</cite>
<h2 id="what-changed-on-stablecoin-rewards">What changed on stablecoin rewards</h2>
The earlier proposal targeted one specific route for yield. <cite>If an issuer paid an affiliate or a related third party, and that party paid stablecoin holders, the arrangement would have been presumed to break the ban on issuer-paid yield.</cite><cite>The final rule removes that test.</cite>
The core statutory ban remains. <cite>The GENIUS Act bars an issuer from paying interest or yield "solely in connection with the holding, use, or retention of such payment stablecoin."</cite><cite>The final rule keeps the issuer interest ban while dropping the third-party yield presumption.</cite>
The relief is not unconditional. <cite>With the presumption removed, the OCC says it will apply the statute to each arrangement based on all relevant facts and circumstances.</cite><cite>The agency also declined to presume that rewards programs operating before the law comply with it.</cite><cite>According to CoinDesk, U.S. crypto exchanges that have long offered stablecoin rewards will have to get the agency to sign off on those existing programs.</cite>
<h2 id="banks-and-exchanges-remain-at-odds">Banks and exchanges remain at odds</h2>
The issue has divided banks and the crypto industry. <cite>The GENIUS Act did not prevent platforms like Coinbase from providing rewards, but banks say such rewards could draw deposits away and potentially weaken community institutions.</cite>
For Coinbase, the stakes are material. Forbes reported in May that <cite>Coinbase's Q1 2026 stablecoin revenue of $305 million was the single largest contributor to its subscription and services growth.</cite> The same article noted that <cite>the rewards rate is paid on USDC balances.</cite>
Other parts of the rule are also now settled. <cite>It keeps a two-business-day redemption window, replaces an automatic seven-day extension with one issuers must request, and sets a $5 million capital floor for issuers it oversees.</cite><cite>Bank Secrecy Act, anti-money laundering and sanctions provisions are reserved for a separate rulemaking coordinated with Treasury.</cite>
Because the OCC will judge programs on their facts, the outcome for individual products is still open. Exchanges and issuers will need to show that their reward structures are not paid solely for holding a stablecoin.
Sources:
<ul>
 <li><a href="https://www.theblock.co/news/regulation/2026-10-21-occ-final-rule-implementing-trump-signed-genius-act-421470" rel="noopener noreferrer nofollow">The Block: OCC debuts final rule implementing the GENIUS Act</a></li>
 <li><a href="https://www.coindesk.com/policy/2026/10/21/occ-s-final-rule-to-start-fresh-in-weighing-stablecoin-rewards-against-genius-act-ban" rel="noopener noreferrer nofollow">CoinDesk: OCC's final rule on stablecoin rewards and the GENIUS Act ban</a></li>
 <li><a href="https://thedefiant.io/converge/regulation/occ-finalizes-genius-act-rule-drops-third-party-yield-presumption" rel="noopener noreferrer nofollow">The Defiant: OCC finalizes GENIUS Act rule, drops third-party yield presumption</a></li>
</ul>

US OCC Finalizes GENIUS Act Standards, Abandoning Proposed Ban On Stablecoin Yield Rewards

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