News · Regulation & Policy
The American Bankers Association argued the OCC's final GENIUS Act standards allow stablecoin issuers to bypass yield prohibitions through affiliates and exchanges.
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The ABA argued the OCC's final GENIUS Act rule permits stablecoin issuers to circumvent yield prohibitions via affiliates and distribution partners.
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The Bank Policy Institute backed the ABA, warning that the exclusion of yield presumptions exposes commercial banks to deposit outflows.
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The Blockchain Association supported the change, stating the OCC's final rule adheres more strictly to statutory legislative text.
Context
The GENIUS Act passed Congress in July 2025 with strict prohibitions on stablecoin yields, sparking prolonged disputes between traditional financial institutions and digital asset…
Why it matters
Payment stablecoin issuers face an evolving compliance landscape where indirect yields via affiliates remain permitted by the OCC, while commercial banks face heightened…
What to watch
Federal Reserve and US Treasury Department draft stablecoin rules under their respective jurisdictions ahead of the statutory January 2027 implementation.
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