U.S. · US Congress · U.S. Treasury · Coinbase · The Block
The initial OCC rule incorporated the GENIUS approach in that it bans issuers from directly paying interest on stablecoins
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The proposed rule also created a presumption that certain arrangements could be unlawful if issuers had certain types of business relationships with third parties.
Key facts
- The OCC's final rule preserves the ability for crypto platforms to offer yield, despite "Congress's clear intent to protect local lending," The American Bankers Association CEO Rob Nichols said
- On Wednesday, the Treasury Department's Office of the Comptroller of the Currency published its final rule, implementing the GENIUS stablecoin act passed into law last year
- Until the courts rule, there will be ambiguity on what is permitted and what is prohibited, which is a negative," said TD Cowen’s Washington Research Group, led by managing director Jaret Seiberg
- The initial OCC rule incorporated the GENIUS approach in that it bans issuers from directly paying interest on stablecoins
Summary
The fight between banks and crypto platforms has reignited after a top banking regulator declined to weigh in on third-party stablecoin rewards, drawing accusations from the banking lobby that regulators are undermining Congress. On Wednesday, the Treasury Department's Office of the Comptroller of the Currency published its final rule, implementing the GENIUS stablecoin act passed into law last year. The GENIUS Act said that issuers cannot directly pay interest on stablecoins, but there has since been debate on whether third-party platforms, such as Coinbase, can. The initial OCC rule incorporated the GENIUS approach in that it bans issuers from directly paying interest on stablecoins. The OCC's final rule preserves the ability for crypto platforms to offer yield, despite "Congress's clear intent to protect local lending," The American Bankers Association CEO Rob Nichols said .