American Bankers Association Says OCC GENIUS Act Rule Undercuts Ban on Stablecoin Yield Payments

The American Bankers Association criticized the Office of the Comptroller of the Currency’s final rule implementing the GENIUS Act, saying it undermines the law’s intent to bar stablecoin yield payments. The group argued that by omitting provisions that would block indirect payments through affiliates or exchanges, the rule leaves room to sidestep the legal ban.

Cointelegraph reported on Oct. 21 that the ABA said in a statement the final rule removed the OCC’s original safeguards against indirect yield-payment structures involving affiliates, exchanges and distribution partners.

The ABA said issuers could still provide effectively the same benefit through partner companies even if they do not pay yield directly. In the group’s view, that would allow firms to technically evade the legal prohibition while offering an economically equivalent return.

Banks also raised concerns about potential deposit outflows. The ABA said the change risks erasing the line Congress drew between yield-bearing stablecoins and traditional bank deposits. The Bank Policy Institute also criticized the rule, saying the removal of provisions estimating yield replaces clarity with ambiguity and exposes the banking system and customers to the risk of deposit flight.

The Blockchain Association, by contrast, supported the final rule’s looser restrictions on indirect yield payments. It said the final rule is closer to the text of the law.

Stablecoin yield payments have been debated since before and after the GENIUS Act passed Congress in July last year. The issue is also a key point in the CLARITY Act, a digital-asset market structure bill whose Senate consideration has been delayed.

The OCC finalized the rule ahead of the GENIUS Act taking effect in January 2027. The Federal Reserve and the Treasury Department are also set to issue related rules in their respective areas.