ABA Challenges OCC Rules on Stablecoin Yield Under GENIUS Act

The American Bankers Association is challenging the Office of the Comptroller of the Currency’s final rules for the GENIUS Act, arguing that the regulator weakened protections against interest or yield payments by payment stablecoin issuers.

The ABA said the OCC removed a proposed presumption targeting certain third-party arrangements involving affiliates, exchanges and distribution partners. Without that safeguard, the group claims issuers could offer economically equivalent rewards while technically complying with GENIUS Act restrictions on yield. The bank lobby says this could blur the line between stablecoins and traditional bank deposits, potentially reducing the funds available for lending.

The dispute reflects a broader divide over stablecoin rewards. The Bank Policy Institute also criticized the OCC’s decision, warning that omitting the yield presumption creates ambiguity and could contribute to deposit flight. By contrast, the Blockchain Association supported the change, saying it brought the final rule closer to the statutory language. Stablecoin yield remains under debate as lawmakers consider the Digital Asset Market Clarity Act, which remains stalled after a failed Senate procedural vote.

The OCC finalized its rules ahead of the GENIUS Act’s January 2027 implementation date. The Federal Reserve and Treasury are also expected to issue regulations covering stablecoins within their respective areas of authority.