The Office of the Comptroller of the Currency (OCC) released its final rule under the GENIUS Act, officially removing a proposed presumption against affiliate rewards while keeping the statutory ban on issuers paying yield for holding stablecoins. The agency determined that the previous test risked capturing permissible arrangements and instead will evaluate rewards structures based on their specific facts through issuer applications and supervision.
Existing rewards programs will not receive grandfathering protections, meaning they face the same regulatory scrutiny as new initiatives. The OCC also rejected requests for a de minimis safe harbor for small yield payments, stating that the statute provides no such exemption. The rule is scheduled to become legally effective on January 18, 2027.
Key facts
- The OCC dropped the proposed presumption that certain linked affiliate or third-party rewards constitute prohibited issuer yield.
- The final rule retains the GENIUS Act prohibition on issuers paying interest or yield solely for holding, using, or retaining a payment stablecoin.
- No grandfathering is provided for existing rewards programs, which will be evaluated in the same manner as those established after enactment.
- The agency declined to create a de minimis safe harbor for small or incidental yield payments.
- Rewards arrangements will be assessed on their individual facts without a published list of approved or prohibited structures.
- The rule takes effect on January 18, 2027, covering permitted and foreign payment stablecoin issuers within the OCC’s jurisdiction.
Why it matters
The removal of the affiliate rewards presumption leaves the legality of individual exchange-run reward arrangements unsettled, requiring case-by-case review rather than providing a clear list of permitted structures.