Stablecoin yield restrictions under OCC GENIUS Act rulemaking

Stablecoin yield restrictions under OCC GENIUS Act rulemaking are central to a notice of proposed rulemaking published by the Office of the Comptroller of the Currency under the 2025 GENIUS Act, and this filing is the OCC’s first rulemaking under that law. The proposal runs 376 pages and includes conventional regulatory provisions such as custody controls and capital requirements. The proposal’s most controversial element concerns restrictions on stablecoin yield and how issuers and affiliates can pay interest to end users.

The Office of the Comptroller of the Currency published a notice of proposed rulemaking pursuant to the 2025 GENIUS Act that explains how the agency might oversee stablecoins. This filing represents the OCC’s first rulemaking under the GENIUS Act and is aimed at turning the 2025 law into rules for crypto companies. The article reporting the proposal was published on 2026-03-01 and categorized under Markets. The article discusses the proposal in the context of the GENIUS Act and the OCC’s exercise of rulemaking authority under that statute.

The proposal totals 376 pages and sets out conventional regulatory provisions for payment stablecoins. Those provisions include custody controls and capital requirements. The document presents these conventional regulatory provisions alongside other standard supervisory measures contained in the proposal.

The proposed rule contains a section that sets limits on payments tied to holding payment stablecoins. “The proposed section provides that permitted payment stablecoin issuers must not pay the holder of any payment stablecoin any form of interest or yield (whether in cash, tokens, or other consideration) solely in connection with holding, use, or retention of such payment stablecoin.” The proposal identifies that the prohibition covers interest or yield paid by issuers or affiliates directly to holders. The document frames the restriction as applying to payments made solely in connection with holding, use, or retention of the stablecoin.

The proposal notes potential methods for attempting yield payments through intermediaries and expresses concern about detection. “The OCC understands that issuers could attempt to make prohibited payments of interest or yield to payment stablecoins holders through arrangements with third parties.” The proposal states that “it would not be possible to identify in detail all, or even most, of the potential arrangements.” Observers have expressed differing views: some think the OCC may be claiming authority to ban third-party yield payments, while others say the proposal fits GENIUS Act language and would not ban yield unilaterally.

The article was published on 2026-03-01 and was categorized under Markets. Named entities mentioned in the article include the Office of the Comptroller of the Currency, the GENIUS Act, CoinDesk, and the State of Crypto newsletter. The filing represents the OCC’s first rulemaking under the 2025 GENIUS Act and proposes a 376-page rule that includes conventional provisions such as custody controls and capital requirements for payment stablecoins. The article conveys a cautious and analytical tone and highlights regulatory ambiguity and controversy surrounding stablecoin yield restrictions.