OCC Proposes Regulations to Address Stablecoin Yield Issues
- The OCC has released a 376-page proposal for the GENIUS Act, open for public comment for 60 days.
- Payment stablecoin issuers would be prohibited from offering any form of yield or interest under the new rules.
- A rebuttable presumption will apply if an issuer pays yield to an affiliate who then pays holders, indicating potential evasion of the rules.
- Merchants can still offer discounts for using payment stablecoins, and issuers may share profits with non-affiliate partners.
- This proposal could impact the ongoing discussions surrounding the Digital Asset Market Clarity Act of 2025 (CLARITY).
The OCC’s draft rule aims to clarify regulations surrounding stablecoins, particularly addressing yield payments that have caused industry friction, notably with firms like Coinbase.
If finalized as proposed, this regulation establishes a no-yield baseline for GENIUS-compliant payment stablecoins, directly affecting how companies can operate within US regulations. (Source)
