OCC Stablecoin Rule Reignites Bank-Crypto Fight Over…
By Abdelaziz Fathi
AI summary of the source article
The OCC removed a proposed restriction on third-party stablecoin rewards from its final GENIUS Act regulations. Instead of presuming such arrangements violate interest payment prohibitions, the regulator will evaluate them individually.
Why it matters
The ABA stated that allowing issuers to channel yield through partners could "encourage deposit migration from banks into stablecoins, potentially raising funding costs and constraining credit availability, particularly for community lenders."
Key facts
- The OCC published its final GENIUS Act rule on October 21, eliminating a rebuttable presumption that third-party stablecoin reward arrangements are unlawful.
- Stablecoin issuers remain prohibited from paying interest or yield directly to token holders solely for holding or using tokens.
- The American Bankers Association criticized the rule, arguing it could encourage deposit migration from banks into stablecoins and raise bank funding costs.
Source excerpt · FinanceFeeds
The Office of the Comptroller of the Currency (OCC) has removed a proposed restriction on third-party stablecoin rewards from its final GENIUS Act regulations, drawing criticism from US banking groups concerned that cryptocurrency platforms could attract deposits away from traditional lenders. The final rule, published on October 21, eliminates a proposed presumption that certain financial arrange…