- The OCC finalized its GENIUS Act rule, which takes effect on January 18, 2027.
- The final rule removes a proposed presumption that certain third-party rewards violated the yield ban.
- Stablecoin issuers cannot pay holders interest solely for holding or using payment stablecoins.
Stablecoin holders may still earn rewards in 2027, but eligibility will depend on how platforms structure the payments. The OCC has finalized its first banking rule under President Donald Trump’s GENIUS Act. The rule keeps direct issuer-paid interest prohibited while removing a proposed presumption against certain third-party reward arrangements. Instead, the OCC will assess arrangements based on their facts, with the rules taking effect on January 18, 2027.
OCC Removes Proposed Presumption on Third-Party Rewards
The OCC’s final rule removes a proposed presumption about certain issuer and third-party reward arrangements. The proposal would have treated some arrangements as violations of the yield ban unless issuers rebutted that assumption. The agency said that presumption could capture permitted arrangements while missing other possible violations. Instead, it will examine each program’s facts and retain authority to act against evasion.
That change does not automatically approve exchange rewards. The OCC declined to list reward models as permitted or prohibited, and it created no broad safe harbor. It will monitor issuer relationships through applications and ongoing supervision. If it identifies violations or attempts to evade the law, it can take action.
Direct Stablecoin Interest Remains Prohibited
The GENIUS Act bars permitted issuers from paying interest or yield solely for holding, using, or retaining a payment stablecoin. The ban covers payments made in cash, tokens, or other forms of value. The OCC’s final rule keeps that restriction in place.
For USDT and USDC holders, the source of a reward and its terms will matter. A platform cannot assume a program is lawful simply by placing a third party between the issuer and customer. Regulators can examine a deal’s substance if a payment appears designed to bypass the restriction.
What USDT and USDC Holders Should Watch in 2027
The final rule takes effect on January 18, 2027, and covers issuers under the OCC’s jurisdiction. Its reach depends on provider status and whether an activity falls under OCC authority. It also sets standards for reserves, redemptions, risk management, audits, reporting, custody, and capital. The Treasury Department will address anti-money laundering and sanctions requirements in separate rulemaking.
Existing reward programs will not automatically receive protection under the new federal rules. The OCC says programs created before the GENIUS Act face the same standard as newer arrangements. Holders should review platform terms and check who funds a reward. They should also distinguish payments for holding stablecoins from returns tied to separate services.
The final rule leaves room for some third-party rewards. However, it does not guarantee that USDT or USDC platforms can keep every current offer. Each program’s treatment will depend on its structure and compliance with the statutory ban. OCC guidance may follow as the market develops. A reward’s label alone does not determine whether the arrangement complies with federal law.
Related: 82 Crypto Protocols Shut Down in 2026: Is the Industry Facing a Crisis?
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