OCC Proposes Ban on Stablecoin Yields to Implement GENIUS Act

Key Facts

1The OCC proposal seeks to implement the GENIUS Act.

2The proposal would bar yield on payment stablecoins.

3It introduces a rebuttable presumption against common issuer–affiliate reward structures.

The US Office of the Comptroller of the Currency (OCC) has introduced a new proposal aimed at implementing the provisions of the GENIUS Act. This regulatory move would effectively prohibit the offering of yields on payment stablecoins, marking a significant shift for digital asset issuers. Additionally, the proposal introduces a rebuttable presumption against common reward structures currently utilized between issuers and their affiliates. The primary objective is to clearly distinguish payment stablecoins from interest-bearing securities, thereby clearing a regulatory path for the upcoming CLARITY Act. While this provides much-needed legal clarity for the industry, the ban on yields may dampen the appeal of stablecoins for retail and institutional users seeking passive income. Major stablecoins such as USDC, USDT, and PYUSD are expected to be directly impacted by these evolving regulatory standards.