{"id":62001,"title":"OCC finalises stablecoin rule banning direct yield payments","publisher":"Stockmark.IT","author":"Stockmark.IT Website","published":"2026-10-22T05:51:18+00:00","modified":"2026-10-22T05:51:18+00:00","canonical_url":"https://stockmark.it/occ-issues-final-rule-on-stablecoin-framework/","markdown_url":"https://stockmark.it/occ-issues-final-rule-on-stablecoin-framework.md","json_url":"https://stockmark.it/occ-issues-final-rule-on-stablecoin-framework.json","category":"Banking","categories":["Banking","Crypto Currency","Government"],"featured_image":"https://i0.wp.com/stockmark.it/wp-content/uploads/2026/10/occ-finalises-stablecoin-rule-banning-direct-yield-payments.png?fit=1536%2C1024&quality=80&ssl=1","format":"news","language":"en-GB","content":"The Office of the Comptroller of the Currency has issued a final rule to implement the Genius Act, providing long-awaited guidance for banks and other regulated entities that hold, issue or move stablecoins. The regulation, which is set to take effect on 18 January, establishes a framework for the industry while specifically prohibiting direct yield payments to customers by stablecoin issuers. The agency stated that it will evaluate third-party yield arrangements on a case-by-case basis, allowing for flexibility in how rewards are structured through intermediaries.\n\nThe final rule addresses a key point of contention in recent legislative efforts to codify a framework for digital asset use. Earlier versions of the Clarity Act faced intense negotiations over whether crypto firms should be barred from issuing rewards for stablecoin balances that are economically or functionally equivalent to interest-bearing bank deposits. Bank trade groups had argued that allowing stablecoin issuers to use third-party arrangements to circumvent a ban could result in money flowing out of the traditional banking system. Although the Senate Banking Committee approved the Clarity Act in May, the legislation ultimately failed due to concerns over potential conflicts of interest, with Democrats pushing for stronger language to prevent government officials from profiting off crypto rules.\n\nIn its Wednesday announcement, the OCC clarified that while the rule bans direct yield payments, it will assess yield or reward arrangements with third parties based on the specific facts and circumstances. The regulator noted that a payment to stablecoin holders through an intermediary might be made solely in connection with the holding, use or retention of a payment stablecoin, or it might be made for other reasons. Additionally, the OCC stated that transaction-based payments that do not amount to interest or yield, or that are not made solely in connection with the holding, use or retention of a payment stablecoin, would not be prohibited. The agency also indicated that it will closely monitor the evolution of the industry and adjust the supervisory and regulatory framework for payment stablecoin issuers as necessary.\n\nThe rule does not currently address parameters related to the Bank Secrecy Act, anti-money laundering regulations or Office of Foreign Assets Control sanctions. The OCC said that a separate rulemaking in coordination with the Treasury Department will address these matters. Furthermore, the agency will later announce when it will begin accepting and processing applications and waiver requests. Comptroller of the Currency Jonathan Gould said the agency is providing a clear, practical framework for payment stablecoin innovation, with strong standards for reserve backing, redemption and risk management, drawing on its longstanding supervisory expertise to support responsible growth.\n\nTreasury Secretary Scott Bessent described the final rule as a watershed moment in American finance, comparing it to the National Currency Act of 1863, which established a national framework for bank-issued currency. He stated that the Genius Act establishes a federal framework for payment stablecoins in the digital age and further cements the United States as the crypto capital of the world. However, the Independent Community Bankers of America expressed concern, stating that it remains focused on ensuring the OCC’s policies protect against the risks that payment stablecoins pose to community bank lending and financial stability. The trade group cited analysis suggesting that the adoption of payment stablecoins could lead to a decline of at least $850 billion in community bank lending in the coming years, and has called for strong consumer-protection and safety-and-soundness guardrails."}