The Office of the Comptroller of the Currency removed a proposed presumption that would have treated certain third-party rewards arrangements as prohibited.
The ability of stablecoin issuers to pay yield on stablecoin holdings has been a leading concern for the banking industry over the last two years. Banks are concerned that stablecoin yield could draw customer deposits away from the regulated banking system.
The OCC said it will assess yield arrangements based on the "facts and circumstances" of each case.
The final rule retains a technical ban on direct yield payments from issuers to customers. The OCC says it will evaluate individual yield or rewards arrangements on an individual basis.
The GENIUS Act prohibits stablecoin issuers from paying interest or yield on payment stablecoins it issues. Bank industry advocates have argued the law's language permits a workaround in which third-party exchanges or affiliates offer "rewards" instead. The OCC acknowledges that certain arrangements would fall under the prohibition, while others may not. Payments made by an agency on an issuer's behalf, solely in connection with holding or using a stablecoin, would likely remain out of bounds. The agency says other third-party arrangements might be permissible. The agency also left open the door to transaction-based payments that did not amount to interest or yield.
To me, this suggests a gray zone where stablecoin yield can live or die by the facts of each case.