The Office of the Comptroller of the Currency (OCC), which oversees national banks and trusts, released its final rule on Wednesday to implement the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. The rule establishes the process for regulated firms and foreign companies to issue payment stablecoins in the United States and takes effect on January 18.
A central point of contention is the handling of yield. The GENIUS Act prohibits payments made 'solely in connection with the holding, use, or retention of such payment stablecoin.' The OCC has declined to offer specific examples of what violates this ban, stating it 'will apply the language of the statute to the facts and circumstances of any particular arrangement.' The regulator suggested the word 'solely' carries significant weight, meaning a reward made 'at least in part, for other reasons' could fall outside the prohibition.
This leaves the fate of existing rewards programs in a state of regulatory limbo. Coinbase One offers 3.75% on USDC, Kraken+ subscribers can earn up to 4.5% on USDG, and PayPal offers 4% on PYUSD. The OCC explicitly stated it will not grant safe harbours for programs that predated the law, noting that 'the fact that Congress may have had notice of these rewards programs does not necessarily imply that Congress endorsed them as permissible.'
Treasury Secretary Scott Bessent praised the rule as a foundation for 'private-sector innovation, competition, and American leadership in digital assets.' The rule emerges after the banking industry pushed for stricter yield prohibitions through the Digital Asset Market Clarity Act, which failed to advance in the Senate last month.
The OCC is the first of several federal agencies to finalise its regulations under the GENIUS Act. The Treasury Department, the Federal Reserve, and the Federal Deposit Insurance Corp. continue work on their respective rules, including Treasury's handling of foreign issuers such as Tether.