Banks and Crypto Firms Split Over OCC's Final Stablecoin Rule

The first final rule under the GENIUS Act, the U.S. stablecoin law, has reopened an old fight between banks and the crypto industry.

What the OCC decided

The Office of the Comptroller of the Currency announced the rule on Wednesday. It sets standards for stablecoin issuers under its oversight, including foreign issuers, covering reserve backing, redemption, risk management and certain custody activities. Anti-money-laundering and sanctions rules will come in a separate rulemaking with the Treasury. The rule and the law take effect Jan. 18, 2027. Comptroller Jonathan V. Gould called it "a clear, practical framework for payment stablecoin innovation."

The Block reported that the OCC is the first U.S. regulator to finalize rules under the act. Issuers are still barred from paying interest directly to holders. But the OCC dropped a proposed presumption that some reward arrangements with third parties, such as trading platforms, could be unlawful. It will review those case by case instead.

The reaction

American Bankers Association CEO Rob Nichols said the rule "will preserve the status quo for crypto platforms despite Congress's clear intent to protect local lending." The Blockchain Association's Lindsay Fraser said in a statement that dropping the presumption brought the rule closer to the law's text.

Why it matters for crypto

Rewards on stablecoin balances are a draw for exchanges and their users. The ruling keeps that option open for now, but other regulators still have rules to finish, and the same question was a sticking point in talks on the broader Clarity Act, which has yet to advance in the Senate.