OCC Backs Off Stablecoin Rewards Curbs as GENIUS Act Rules Go Final

Key Insights: GENIUS Act rules drop proposed rewards curbs but retain the issuer yield ban. Issuers gain reserve flexibility but must keep stablecoins backed at least 1:1. Rules start January 18, 2027, with AML and sanctions requirements still pending. GENIUS Act rules retain the issuer yield ban while dropping a proposed restriction on certain stablecoin rewards arrangements. The Office of the Comptroller of the Currency finalized the framework, leaving banks’ dispute with crypto firms unresolved. The agency also eased reserve management restrictions while keeping backing, liquidity and risk requirements. GENIUS Act Rewards Review Leaves Bank Dispute Unresolved Banks had sought tighter restrictions on rewards paid for holding stablecoins, warning that such payments could drain deposits.

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