Banks criticize OCC stablecoin rules over third party yield provisions

The Office of the Comptroller of the Currency has finalized its rules on payment stablecoin issuance and custody under the GENIUS Act. Cointelegraph, The Block, and CoinDesk all reported that the agency published its final regulatory framework, which covers payment stablecoins and specific custody activities. [1][3][5][6]

The American Bankers Association and other banking advocacy organizations have criticized the finalized regulations. Cointelegraph, The Block, and Coin Edition reported that the ABA filed a notice stating the regulator dropped a provision that established a presumption against third party stablecoin yield arrangements. The lobbying group argued that this omission undermines the intent of the United States Congress. [1][2][3][11]

The controversy centers on whether third party yield distribution circumvents statutory bans on stablecoin rewards. CoinDesk reported that the OCC declined to weigh in directly on third party stablecoin rewards and chose to start fresh when assessing yield structures against the statutory prohibition. [3][6][7]

The American Bankers Association was founded in 1875 and functions as the largest financial trade group in the United States, representing institutions across various asset sizes. The legislative framework takes effect in mid-January, according to Cointelegraph. [5][12]