ABA says OCC stablecoin rule undercuts Congress on yield

Key points

• ABA says the OCC's final GENIUS rule undermines Congress's line between stablecoins and deposits
• OCC dropped a proposed presumption against some third-party stablecoin rewards arrangements
• Blockchain Association backs the change; Bank Policy Institute sides with the ABA
• Fed and Treasury are expected to issue their own GENIUS rules; implementation is January 2027

The American Bankers Association (ABA) accused the Office of the Comptroller of the Currency on Wednesday of weakening a line Congress drew between stablecoins and bank deposits, after the regulator dropped a proposed presumption against certain stablecoin rewards arrangements in its final GENIUS Act rule, The Block reported.

What the OCC changed on stablecoin rewards

The GENIUS Act, enacted in 2025, bars stablecoin issuers from paying interest directly to holders. Whether third-party platforms such as Coinbase may offer rewards on stablecoin balances has remained contested.

According to The Block, the OCC’s proposed rule would have presumed some arrangements unlawful when an issuer had certain business relationships with third parties. The final rule removes that presumption. A regulatory official told reporters on a Tuesday call that rewards arrangements would be assessed case by case, The Block said.

Cointelegraph reported that the ABA also objected because the OCC declined to adopt a broader presumption against arrangements designed to get around the yield ban. The ABA argues issuers can now offer economically equivalent yield while technically avoiding the prohibition, according to Cointelegraph. The group said the rules include “several positive steps” but took issue with the treatment of yield.

Banks and crypto groups respond

ABA CEO Rob Nichols said the final rule preserves crypto platforms’ ability to offer yield, which he argued threatens the distinction Congress made between payment stablecoins and bank deposits, according to The Block. He called addressing deposit flight after it occurs “the wrong approach.”

The Bank Policy Institute largely agreed with the ABA, Cointelegraph reported, saying that omitting the presumption “replaces clarity with ambiguity” and risks deposit flight.

The Blockchain Association took the opposite view. Chief Policy Officer Lindsay Fraser said removing the presumption brings the rule closer to the statutory text, The Block reported.

TD Cowen’s Washington Research Group, led by managing director Jaret Seiberg, viewed the final rule as negative for banks because the case-by-case approach creates uncertainty, according to The Block. The firm’s note also flagged that a future Comptroller appointed after the 2028 election could take a different view of what counts as evasion.

Why the yield fight continues

Stablecoin rewards were a central dispute in Congress before and after the GENIUS Act passed in July 2025, according to Cointelegraph. The issue was also heavily debated during negotiations over the broader CLARITY Act, the crypto market structure bill, which has stalled in the Senate after a failed procedural vote last month, both outlets reported.

The OCC finalized its rule ahead of the GENIUS Act’s January 2027 implementation date, Cointelegraph said. The Federal Reserve and Treasury are expected to issue their own GENIUS-related rules, so the treatment of rewards could still be addressed in other agencies’ rulemakings.

With the OCC choosing case-by-case review, any limits on third-party rewards would come through supervision and enforcement decisions rather than a blanket presumption in the rule text.