ABA Criticizes OCC Stablecoin Rules Over Third-Party Yield Provisions

The American Bankers Association voiced opposition on Oct. 21 to the Office of the Comptroller of the Currency's finalized regulations implementing the GENIUS Act, contending the agency's framework contradicts congressional intent regarding stablecoin rewards ¹.

While acknowledging that the OCC included positive regulatory steps, the ABA criticized the banking regulator for dropping a proposed presumption that would have treated certain third-party arrangements as violations of statutory bans on yield ¹. According to the trade organization, removing safeguards concerning distribution partners, exchanges, and affiliates enables payment stablecoin issuers to offer economically equivalent yield while nominally avoiding statutory prohibitions ¹. The group warned that these omissions blur the line separating payment stablecoins from insured commercial deposits, potentially siphoning capital that banks utilize to underwrite consumer and commercial loans ¹.

Industry Split Over Yield Enforcement

The Bank Policy Institute aligned with the ABA, asserting that omitting the yield presumption introduces ambiguity and exposes lenders to deposit flight ¹. Conversely, crypto industry representatives praised the adjustment; the Blockchain Association stated the OCC aligned its regulatory language directly with the text passed by lawmakers ¹. Yield restrictions have remained a contentious debate since Congress enacted the GENIUS Act in July 2025, and parallel fights persist within the stalled Digital Asset Market Clarity Act following a failed Senate procedural vote ¹.

The OCC's standards come as agencies prepare for the statute's formal implementation in January 2027 ¹. The Federal Reserve and the US Treasury Department are slated to publish their respective rulemaking measures governing stablecoin activities under their regulatory jurisdictions ¹. Earlier, regulators moved forward on related frameworks, including the Treasury and FDIC advancing GENIUS Act rules ahead of the 2027 effective date ¹.