OCC rule leaves stablecoin rewards open to review

3.5% is the maximum yield Coinbase offers on USDC, and a new rule from the Office of the Comptroller of the Currency leaves crypto exchanges room to keep offering rewards. That figure measures the return Coinbase advertises on USDC balances, according to the Associated Press report. Your rewards may continue, but the OCC will assess each program on its own facts.

The OCC announced the final rule on Oct. 21 to implement the GENIUS Act, the federal law that sets rules for payment stablecoins. The rule takes effect Jan. 18, 2027, and sets requirements for stablecoin issuers and some custody services under the OCC’s jurisdiction, the agency said in its final-rule announcement.

Who can pay rewards under the rule?

Stablecoin issuers cannot pay interest directly to people who hold their coins, but exchanges and other intermediaries may be able to offer rewards. The OCC will decide whether a particular arrangement violates the law case by case.

That leaves exchanges such as Coinbase and Robinhood with a path to offer customers some of the earnings from assets backing stablecoins. Those reserves can include bank deposits and U.S. Treasuries, which earn interest; an exchange may pass some earnings to customers as a reward.

What does the OCC consider when it reviews a program?

The GENIUS Act bars payments made “solely in connection with the holding, use, or retention” of a payment stablecoin. The OCC says an intermediary payment may also be made for other reasons, depending on the arrangement’s facts and circumstances.

The rule does not give existing reward programs automatic approval or a safe harbor. A program that was already running before the law still faces review, and the OCC has not provided examples showing exactly which reward structures would pass.

Why were banks pushing for tighter limits?

Banks have warned that higher stablecoin rewards could draw savings out of bank accounts, reducing funds available for lending. The AP reported that Coinbase offers up to 3.5% on USDC balances, while the average traditional savings account yield was 0.38% in the latest figures cited from the Federal Deposit Insurance Corp.

The OCC’s decision leaves the existing law in place, so the rewards fight could continue as regulators review programs and Congress considers further legislation. For you, a crypto reward remains different from bank interest: crypto accounts do not have equivalent federal deposit insurance, consumer groups have warned.

References

• Associated Press report — apnews.com
• final-rule announcement — occ.gov