Cryptocurrency users in the United States will not lose the option of earning returns on their stablecoin balances entirely. The Office of the Comptroller of the Currency (OCC) has approved the final rules under the GENIUS Act, which formally prohibits the establishment of classic deposit-like structures and direct interest payments on digital dollars. However, it does not completely ban reward programs offered by exchanges and fintech companies. These new regulations will take effect on January 18, 2027.
Clear Distinction Between Interest and Rewards
The new framework sharpens the boundary between cash and investment products. As per the guidelines, stablecoin issuers can no longer pay direct income or interest on the coins kept in users’ wallets. U.S. law now defines stablecoins as digital payment instruments that must be backed one-to-one with real assets.
The OCC is known as a primary regulator overseeing national banks and certain financial institutions in the U.S. In its final text, the institution retracted a more stringent provision originally intended to automatically prohibit all payments linked to stablecoins, including bonuses and rewards offered by third-party platforms.
The OCC’s final text prohibits interest payments by stablecoin issuers but does not entirely eliminate reward programs offered by exchanges and fintech platforms.
Space Remains for Exchanges and Fintech Firms
With the latest regulations, platforms like Coinbase, Kraken, and PayPal are allowed to continue offering rewards to users holding stablecoin balances. However, this allowance comes with limitations, as authorities will individually examine each program to prevent issuers from covertly distributing interest through exchanges.
This represents a shift from a blanket ban to a case-by-case regulatory model, aiming to differentiate publicly advertised reward programs from payments that effectively function as interest.
Authorities will individually scrutinize the programs offered by exchanges to ensure no hidden interest is distributed under the guise of rewards.
Banks Withdraw, Issuers Granted Reserve Flexibility
Traditional banks have not achieved their desired outcome in this process. Major banking circles had pushed for the removal of all payments tied to stablecoins, arguing that high returns in the crypto market were diverting savings away from classic accounts. The final text does not meet these demands.
Conversely, the regulatory body has afforded stablecoin issuers more flexibility in reserve management. Companies can now channel their reserves into longer-term and higher-yield U.S. Treasury securities, and excessive profits can be withdrawn more swiftly.
Liquidity Strain Ignites 24-Hour Notification Mandate
One of the most stringent sections of the regulations addresses sudden redemption surges. Should users attempt to cash out more than 10% of the total coin supply within a single day, the related company must report this within 24 hours to the authorities.
The document released by the OCC represents the first phase of comprehensive stablecoin regulation in the United States. The Federal Reserve and the FDIC are set to announce their own rule packages later; however, the central direction is already clear: mass return opportunities in crypto-dollars have not closed completely but are now subject to much tighter and individual oversight.
