Stablecoin yield rewards (likely won't be) banned under OCC proposal: State of Crypto
The OCC's stablecoin proposal includes ambiguous rules potentially restricting third-party yield payments, though many expect Congress to supersede these.Summary
The Office of the Comptroller of the Currency (OCC) released a proposed rulemaking under the GENIUS Act to regulate stablecoins, sparking debate over provisions concerning yield payments. The proposal suggests that permitted payment stablecoin issuers must not pay holders any interest or yield solely for holding the stablecoin, and it addresses potential prohibited payments made through third parties, presuming payments are for yield unless proven otherwise.
Industry observers are divided: some feel the OCC is overstepping its authority by attempting to ban third-party yield, while others believe the language aligns with the GENIUS Act and poses no threat of a unilateral ban. The proposal might force companies like Coinbase and Circle to restructure agreements to resemble loyalty programs rather than interest payments. Furthermore, the definition of an "affiliate" and rules around "white-label relationships" could also impact yield offerings.
Crucially, the final implementation of these yield restrictions is uncertain because stablecoin yield is a contentious issue holding up broader market structure legislation in Congress. Many anticipate that if Congress passes the market structure bill, the OCC will have to issue an interim proposal, suggesting the current yield provisions are unlikely to be finalized as written.
(Source：CoinDesk)