{"id":575363,"date":"2026-10-22T22:20:12","date_gmt":"2026-10-22T21:20:12","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=575363"},"modified":"2026-10-22T14:55:19","modified_gmt":"2026-10-22T13:55:19","slug":"occ-drops-proposed-affiliate-rewards-presumption-but-stablecoin-yield-ban-stays","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/occ-drops-proposed-affiliate-rewards-presumption-but-stablecoin-yield-ban-stays\/","title":{"rendered":"OCC drops proposed affiliate rewards presumption, but stablecoin yield ban stays"},"content":{"rendered":"<p>The Office of the Comptroller of the Currency (OCC) dropped a proposed presumption against certain stablecoin rewards routed through affiliates or related third parties in its Oct. 21 final GENIUS Act rule. The rule retains the prohibition on issuers paying holders interest or yield solely for holding, using or retaining a payment stablecoin, with older rewards programs facing the same scrutiny as newer ones.<\/p>\n<p>The rule <a href=\"https:\/\/www.occ.gov\/news-issuances\/news-releases\/2026\/nr-occ-2026-92.html\">takes effect on Jan. 18, 2027<\/a>. It covers permitted and foreign <a href=\"https:\/\/cryptoslate.com\/stablecoins\/\">payment stablecoin issuers<\/a> within the OCC\u2019s jurisdiction and certain custody activities by OCC-supervised entities. Comptroller Jonathan V. Gould, posting as <a href=\"https:\/\/x.com\/USComptroller\/status\/2112863025111736814\">@USComptroller<\/a> on X, said the agency had delivered the final rule ahead of schedule.<\/p>\n<p>For exchange-run rewards, CryptoSlate\u2019s reading is that removing the proposed test leaves the legality of individual arrangements unsettled. The change follows CryptoSlate\u2019s earlier <a href=\"https:\/\/cryptoslate.com\/banks-pushed-congress-to-kill-stablecoin-yield-with-clarity-act-coinbase-may-have-found-the-loophole\/\">coverage of exchange stablecoin rewards<\/a>.<\/p>\n<p>CryptoSlate separately examined the rule\u2019s <a href=\"https:\/\/cryptoslate.com\/treasury-hails-americas-new-stablecoin-system-as-occ-removes-safeguards-banks-wanted-against-deposit-flight\/\">reserve changes and banks\u2019 deposit-flight concerns<\/a>.<\/p>\n\n<div class=\"cs-article-embed\">\n    <a href=\"https:\/\/cryptoslate.com\/clarity-act-needs-11-more-senate-votes-but-4-of-the-49-it-already-has-want-the-bill-changed\/\" class=\"cs-article-embed__link\">\n        <div class=\"cs-article-embed__body\">\n            <span class=\"cs-article-embed__related-reading\">Related Reading<\/span>\n            <h3 class=\"cs-article-embed__title\">CLARITY Act needs 11 more Senate votes, but 4 of the 49 it already has want the bill changed<\/h3>\n        <\/div>\n        <span class=\"cs-article-embed__arrow\" aria-hidden=\"true\">\n            <i class=\"fa-light fa-arrow-up-right\"><\/i>\n        <\/span>\n    <\/a>\n<\/div>\n\n<h2>How the OCC will assess rewards<\/h2>\n<p>The proposal would have presumed that certain linked arrangements amounted to prohibited issuer yield: an issuer would pay interest or yield to an affiliate or related third party, which would in turn arrange payments to holders solely for holding, using or retaining the issuer\u2019s stablecoin.<\/p>\n<p>The proposed presumption would have applied to those specified payment relationships. The <a href=\"https:\/\/www.occ.gov\/news-issuances\/news-releases\/2026\/nr-occ-2026-92a.pdf\">final rule<\/a> removes it and retains the statutory yield prohibition.<\/p>\n<p>The agency said the proposed test could have caught permissible arrangements while suggesting that impermissible arrangements outside its triggers were acceptable. Requiring a rebuttal in those circumstances risked imposing burdens without a matching benefit.<\/p>\n<p>Instead, the OCC will apply the statute to the facts of each arrangement. It has not provided a list of permitted or prohibited rewards structures.<\/p>\n<p>Its anti-evasion authority also remains. The rule explains that an issuer cannot avoid the prohibition simply by paying an agent to make interest or yield payments on its behalf that it could not make directly.<\/p>\n<p>Transaction-based payments also require an assessment of the particular facts. Payments that do not constitute interest or yield, or that are not made solely in connection with stablecoin holding, use or retention, fall outside the statutory prohibition.<\/p>\n\n<div class=\"cs-article-embed\">\n    <a href=\"https:\/\/cryptoslate.com\/us-deposit-rates-choke-usdc-adoption-and-a-bis-model-reveals-why\/\" class=\"cs-article-embed__link\">\n        <div class=\"cs-article-embed__body\">\n            <span class=\"cs-article-embed__related-reading\">Related Reading<\/span>\n            <h3 class=\"cs-article-embed__title\">US deposit rates choke USDC adoption, and a BIS model reveals why<\/h3>\n        <\/div>\n        <span class=\"cs-article-embed__arrow\" aria-hidden=\"true\">\n            <i class=\"fa-light fa-arrow-up-right\"><\/i>\n        <\/span>\n    <\/a>\n<\/div>\n\n<p>Rewards programs that predate the GENIUS Act will be evaluated in the same way as programs established after enactment or the law\u2019s effective date.<\/p>\n<p>The regulator also declined a de minimis safe harbor for small or incidental yield payments, saying the statute contains no exemption for them.<\/p>\n<p>The <a href=\"https:\/\/www.occ.gov\/news-issuances\/news-releases\/2026\/nr-occ-2026-92a.pdf\">rule\u2019s rewards provisions<\/a> apply the issuer yield prohibition equally to institutional and retail stablecoin holders. The rule also offers no cure period for violations, although the OCC says it will exercise enforcement discretion according to the circumstances.<\/p>\n<h2>Applications and supervision come next<\/h2>\n<p>The OCC will initially monitor arrangements through issuers\u2019 applications and ongoing supervision. Where it identifies transactions that violate or evade the yield prohibition, it says it will take action and provide additional public guidance as appropriate.<\/p>\n<p>The OCC says GENIUS Act rules on the Bank Secrecy Act, anti-money laundering and sanctions will be addressed in separate rulemaking coordinated with Treasury. The OCC decision is also distinct from the <a href=\"https:\/\/cryptoslate.com\/treasury-proposed-genius-change-forces-us-exchanges-to-audit-foreign-stablecoin-or-face-delisting\/\">Treasury foreign-stablecoin diligence proposal previously covered by CryptoSlate<\/a>.<\/p>\n<p>Alongside the rule, the OCC released Paperwork Reduction Act notices covering <a href=\"https:\/\/www.occ.gov\/news-issuances\/news-releases\/2026\/nr-occ-2026-92b.pdf\">licensing and registration applications<\/a> and <a href=\"https:\/\/www.occ.gov\/news-issuances\/news-releases\/2026\/nr-occ-2026-92c.pdf\">weekly and quarterly reporting forms<\/a>. Each specifies a comment deadline 30 days after Federal Register publication; the posted copies leave the calendar deadlines unfilled.<\/p>\n<p>The Jan. 18 effective date is separate from the application opening. The OCC\u2019s announcement says another news release will specify when it begins accepting and processing prospective issuers\u2019 applications and waiver requests.<\/p>\n\n<div class=\"cs-article-embed\">\n    <a href=\"https:\/\/cryptoslate.com\/treasury-will-let-states-file-for-stablecoin-approval-before-finishing-their-rules\/\" class=\"cs-article-embed__link\">\n        <div class=\"cs-article-embed__body\">\n            <span class=\"cs-article-embed__related-reading\">Related Reading<\/span>\n            <h3 class=\"cs-article-embed__title\">Treasury will let states file for stablecoin approval before finishing their rules<\/h3>\n        <\/div>\n        <span class=\"cs-article-embed__arrow\" aria-hidden=\"true\">\n            <i class=\"fa-light fa-arrow-up-right\"><\/i>\n        <\/span>\n    <\/a>\n<\/div>\n\n<p>The OCC anticipates that experience with these arrangements could support a later rule clarifying the yield prohibition.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The final GENIUS Act rule leaves linked issuer and third-party rewards subject to review and gives existing programs no grandfathering.<\/p>\n","protected":false},"author":1264,"featured_media":575398,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[77968,11,32631],"tags":[77433,75695],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>OCC drops proposed affiliate rewards presumption, but stablecoin yield ban stays<\/title>\n<meta name=\"description\" content=\"The OCC\u2019s final GENIUS Act rule drops a proposed affiliate rewards presumption while retaining the yield ban and equal scrutiny of older programs.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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