ABA criticizes OCC the final GENIUS Act rule for abandoning stablecoin yield restrictions
BIBIBI
AT A GLANCE
OCC Released final stablecoin rules under the GENIUS Act and revised the review approach for third-party reward arrangements.
Article
[U.S.OCC takes the lead in finalizing the GENIUS Act’s stablecoin rules and revises provisions related to third-party rewards]
The Office of the Comptroller of the Currency (OCC) has released final rules implementing the GENIUS Act, becoming the first regulator to finalize stablecoin implementation rules under the Act. The rules will take effect on January 18, 2027, providing an entry pathway for banks and nonbank firms to conduct payment stablecoin business and establishing relevant standards for foreign stablecoin issuers and asset custody. Regarding stablecoin rewards, the final rules remove the presumption in the proposed rules that certain commercial arrangements between issuers and third parties may be unlawful; however, the statutory prohibition on issuers directly paying interest to stablecoin holders remains applicable. Regulatory officials said that relationships between issuers and third parties will be reviewed on a case-by-case basis to ensure that the arrangements do not violate the statutory prohibition.OCC still retains authority to enforce against conduct that circumvents the Act and will take appropriate action if clear circumvention is identified.
Key points
01
The Office of the Comptroller of the Currency (OCC) has released final rules implementing the GENIUS Act.
02
The rules will take effect on January 18, 2027.
03
The rules provide an entry pathway for banks and nonbank firms to conduct payment stablecoin business and establish relevant standards for foreign stablecoin issuers and asset custody.
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The final rules remove the presumption in the proposed rules that certain commercial arrangements between issuers and third parties may be unlawful.
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The statutory prohibition on issuers directly paying interest to stablecoin holders remains applicable.
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Regulatory officials said that relationships between issuers and third parties will be reviewed on a case-by-case basis.
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OCC stated that it still retains authority to enforce against conduct that circumvents the Act.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
The rules clarify pathways for banks and nonbank firms to enter payment stablecoin business and also address standards for foreign issuers and asset custody. Third-party reward arrangements are no longer presumed unlawful in advance, but will still be reviewed case by case; issuers remain prohibited from directly paying interest to holders.
Why it matters to readers
The rules provide a regulatory framework for payment stablecoin business while preserving room for review and enforcement regarding third-party reward arrangements and circumvention.
Beginners should distinguish between “third-party reward arrangements are no longer presumed unlawful in advance” and “issuers may directly pay interest”: the source clearly states that the latter remains subject to a statutory prohibition.
Risks and unknowns
The material is relayed from a channel and does not include the original OCC announcement or the full text of the final rules.
The specific requirements for foreign stablecoin issuers and asset-custody standards are not explained.
Whether third-party reward arrangements are compliant depends on case-by-case review; the material does not provide specific assessment criteria.
The material does not state any compliance conclusion for any specific stablecoin issuer.
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