OCC proposal leaves stablecoin yield rules ambiguous

The Office of the Comptroller of the Currency published a notice of proposed rulemaking under the GENIUS Act to govern stablecoins. Most of the 376-page proposal covers expected items like custody controls and capital requirements, but its sections on yield stand out as unclear and potentially controversial.

One proposed provision would bar permitted payment stablecoin issuers from paying holders any form of interest or yield solely for holding the stablecoin, and the OCC said it expects issuers might try to route prohibited payments through third parties. The proposal lists examples of such relationships but acknowledges it cannot catalog every possible arrangement and would presume payments are for yield if a contract indicates as much.

Firms would be able to rebut that presumption with evidence the contractual relationship does not meet those terms. Industry participants say companies such as Coinbase, Circle, PayPal and Paxos might need to adjust agreements so payments resemble loyalty programs rather than interest.

United States

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