The final GENIUS Act rule leaves linked issuer and third-party rewards subject to review and gives existing programs no grandfathering.
The Office of the Comptroller of the Currency (OCC) dropped a proposed presumption against certain stablecoin rewards routed through affiliates or related third parties in its Oct. 21 final GENIUS Act rule. The rule retains the prohibition on issuers paying holders interest or yield solely for holding, using or retaining a payment stablecoin, with older rewards programs facing the same scrutiny as newer ones.
The rule takes effect on Jan. 18, 2027. It covers permitted and foreign payment stablecoin issuers within the OCC’s jurisdiction and certain custody activities by OCC-supervised entities. Comptroller Jonathan V. Gould, posting as @USComptroller on X, said the agency had delivered the final rule ahead of schedule.
For exchange-run rewards, CryptoSlate’s reading is that removing the proposed test leaves the legality of individual arrangements unsettled. The change follows CryptoSlate’s earlier coverage of exchange stablecoin rewards.
CryptoSlate separately examined the rule’s reserve changes and banks’ deposit-flight concerns.
The proposal would have presumed that certain linked arrangements amounted to prohibited issuer yield: an issuer would pay interest or yield to an affiliate or related third party, which would in turn arrange payments to holders solely for holding, using or retaining the issuer’s stablecoin.
The proposed presumption would have applied to those specified payment relationships. The final rule removes it and retains the statutory yield prohibition.
The agency said the proposed test could have caught permissible arrangements while suggesting that impermissible arrangements outside its triggers were acceptable.
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