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The OCC’s proposal to implement the GENIUS Act would bar yield on payment stablecoins and introduce a rebuttable presumption against common issuer–affiliate reward structures.The US Office of the Comptroller of the Currency has dropped a 376‑page proposal to implement the Guiding and Establishing National Innovation for US Stablecoins Act that looks to settle the ongoing stablecoin yield fight.
is open to public comment for 60 days from Wednesday’s publication date, and sets out detailed rules for permitted payment stablecoin issuers under the OCC’s jurisdiction. Supervised entities would be barred from paying any form of interest or yield, whether in cash, tokens or other consideration, “solely in connection with the holding, use, or retention” of a payment stablecoin, consistent with section 4 of theon X that the OCC proposed to “resolve the debate on stablecoin yield through rulemaking,” potentially clearing the way for theGENIUS, enacted in July 2025, created a federal framework for payment stablecoins and restricted issuance in the US to licensed permitted issuers such as bank subsidiaries, new federal stablecoin issuers, and certain large state‑regulated firms.The OCC’s draft rule translates that statutory framework into operational constraints, including tight limits on how GENIUS‑regulated issuers can structure economics around their The proposal goes a step further, adding a rebuttable presumption that an issuer is violating the ban on paying yield if it has an arrangement to pay yield to an affiliate or “related third party” and that entity then pays yield to holders of the issuer’s payment stablecoin.Issuers can try to rebut the presumption by submitting written materials to the OCC, but the agency stresses the “close nexus” between issuer payments and end‑holder yield and frames such structures as “highly likely” attempts to evade the statute. The proposal also draws two explicit carve‑outs. It “is not intended to prevent” merchants from independently offering discounts for using payment stablecoins, and it does not bar an issuer from sharing profits from the stablecoin with a non‑affiliate partner in a whitelabel arrangement.By using GENIUS implementation to prohibit yield at the issuer level, the banking side of the framework effectively establishes a no‑yield baseline for GENIUS‑compliant payment stablecoins.Is China hoarding gold so yuan becomes global reserve instead of USD? Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy
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