OCC Proposes New Rules for Stablecoins Under GENIUS Act
- The Office of the Comptroller of the Currency (OCC) released a proposed rulemaking to regulate stablecoins under the GENIUS Act.
- The proposal includes a controversial section that may restrict how stablecoin issuers and their partners offer yield payments to users.
- Under the proposal, issuers must not pay interest or yield on stablecoin holdings, potentially affecting companies like Coinbase and Circle.
- If an issuer holds a ≥25% stake in a third-party, they may be prohibited from offering yield payments, complicating existing partnerships.
- The OCC’s proposal is part of an ongoing effort to establish comprehensive regulations for the U.S. crypto market ahead of potential new laws.
The OCC’s proposed rules aim to clarify regulatory oversight for stablecoins, particularly concerning yield payments, which have sparked debate among stakeholders in the crypto industry.
As it stands, if implemented as proposed, these regulations could significantly impact how companies manage yield offerings tied to stablecoin deposits. (Source)
