The week in digital assets was dominated by regulation. The net-net of a wild week? Banks face renewed competition for customers’ cash after federal regulators left room for cryptocurrency platforms to offer stablecoin rewards, setting up a contest over returns that could affect the cost and availability of bank loans.

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The Office of the Comptroller of the Currency (OCC) on Wednesday (Oct. 21) finalized regulations under the GENIUS Act, establishing standards for stablecoin issuers under its supervision. Effective Jan. 18, 2027, the rules address the assets backing those coins, customers’ ability to exchange them for money, safekeeping and risk management.

Stablecoins are digital tokens designed to maintain a fixed value, typically $1. Their appeal increasingly extends beyond moving money to what customers can earn while holding them.

The distinction between who creates a stablecoin and who distributes it sits at the center of the dispute. Issuers face a prohibition on paying interest or returns solely for holding, using or retaining their coins. But the OCC declined to impose a blanket restriction on arrangements involving third-party platforms.

That leaves an opening for rewards, with an important qualification: The agency will examine individual arrangements. Its final rule also says existing rewards programs won’t automatically be considered compliant simply because they predate the law. Platforms therefore haven’t received unrestricted permission to continue every offering.

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