US Banks Push Back on OCC Stablecoin Rules Citing 'Undermining' of Congress

The American Bankers Association (ABA) is criticizing the Office of the Comptroller of the Currency's (OCC) recently finalized rules implementing the GENIUS Act, arguing that key provisions on stablecoin yield undermine Congress's original intent. In a Wednesday notice, the banking advocacy group acknowledged the final rules included "several positive steps" but raised concerns over the regulator's decision to drop safeguards targeting indirect yield arrangements.

At the center of the dispute is the OCC's removal of a proposed presumption that certain third-party arrangements—including those involving affiliates, exchanges, and distribution partners—would violate the law's ban on yield payments. According to the ABA, this omission allows payment stablecoin issuers to "provide economically equivalent yield while technically avoiding the statutory prohibition." The group warned that these gaps could erode the boundary Congress drew between payment stablecoins and traditional bank deposits, potentially diverting funds away from lending activity that drives the US economy.

The Bank Policy Institute (BPI) echoed the ABA's concerns, stating that "the decision to omit the yield presumption replaces clarity with ambiguity and puts the banking system and its customers at risk of deposit flight." However, the Blockchain Association offered a contrasting view, arguing the OCC's revision "brought the final rule more closely in line with the statutory text." Stablecoin rewards were a flashpoint during congressional debate over GENIUS before it passed in July 2025, and remain contentious as lawmakers weigh the Digital Asset Market Clarity Act, a broader crypto market structure bill stalled after a failed Senate procedure vote last month.

The OCC finalized its stablecoin rules ahead of the GENIUS Act's scheduled implementation in January 2027. Other federal agencies, including the Federal Reserve and the Treasury Department, are expected to issue additional rules addressing stablecoin oversight within their respective jurisdictions.