The Office of the Comptroller of the Currency’s final GENIUS Act rule preserves the statutory ban on stablecoin issuers paying holders interest or yield. It also removes a proposed presumption for certain reward arrangements involving an issuer’s affiliates or related parties, leaving a central question unresolved for any particular program: is a third party acting independently, or paying on the issuer’s behalf?
The final rule published October 23 gives no general approval to third-party rewards. The OCC declined to provide a list of permitted and prohibited arrangements or a general safe harbor. It will examine the facts and circumstances rather than settle the issue through a program’s rewards label.
The OCC announced the rule October 21. It takes effect January 18, 2027, and governs entities within the OCC’s jurisdiction. Its discussion does not establish how another primary regulator will apply the statute.
What the issuer prohibition covers
Section 4(a)(11) of the GENIUS Act, enacted July 18, 2025, prohibits a permitted or foreign payment-stablecoin issuer from paying holders interest or yield solely in connection with holding, using, or retaining a payment stablecoin. The restriction covers cash, tokens, and other consideration.
The OCC removed the proposed presumption in sections 15.10(c)(4)(i) through (iii), addressing specified linked arrangements. It retained the statutory prohibition and its authority to address evasion. Removing that presumption does not itself establish permission for an issuer to route a payment through another company.
In its discussion of the final rule, the OCC says an agent paying on an issuer’s behalf solely in connection with holding, using, or retaining the stablecoin can fall within the prohibition. A separate payer therefore does not, by itself, resolve whether the issuer ban applies.
Where third-party arrangements remain unsettled
The OCC did not decide the legality of any named rewards program. Nor did it grandfather pre-existing programs. Continued operation is therefore no assurance that a program has regulatory protection.
The agency also describes limits to the prohibition. Some indirect payments may fall outside it if they are not solely connected to holding, using, or retaining a stablecoin. Bona fide service payments generally would not be prohibited absent contrary facts. Neither observation creates a safe harbor for a particular arrangement.
The preamble records competing commenter positions. Some sought a narrow approach to independent third-party payments; others favored capturing indirect payments, transaction-based payments, or payments for which stablecoin use was a necessary condition. Those positions explain the dispute, but do not establish the OCC’s verdict on a specific program.
For a reader examining a rewards arrangement, the practical questions are who funds the payment, who directs or controls it, whether contractual or white-label ties connect the payer to the issuer, and what the payment actually compensates. These questions follow from the agency’s discussion; they are not a checklist that guarantees a legal outcome.
What would clarify the boundary
The distinction between deleting a presumption and granting a safe harbor matters. The final rule leaves room for facts that place a payment outside the issuer prohibition, while preserving scrutiny of payments made on an issuer’s behalf. It does not categorically declare independent third-party rewards legal or illegal.
The rewards discussion is separate from the rule’s other requirements. CRYPTO MAIN NEWS has covered the OCC’s revised redemption provisions and its stablecoin reporting forms ahead of January. Neither set of requirements determines whether a rewards arrangement is permissible.
Further OCC guidance, a decision addressing a specific arrangement, or an amendment could clarify the boundary. Until then, holders and platforms should distinguish the rule’s confirmed issuer prohibition from unresolved questions about a particular third party’s role and payment purpose.
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Investment disclaimer: This article is provided for general information only and does not constitute investment, financial, legal or tax advice. Digital assets are volatile, and all investment decisions and their consequences are your own responsibility.