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American Bankers Association: OCC’s GENIUS rules ‘undermine’ US Congress
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The American Bankers Association on Wednesday criticized the Office of the Comptroller of the Currency’s final GENIUS Act rules, saying stablecoin yield provisions undermine Congress’s intent. The banking lobby said the OCC removed proposed safeguards for indirect arrangements involving affiliates, exchanges and distribution partners. The notice followed the OCC’s finalized rules on payment stablecoin issuance and custody ahead of the law’s January 2027 implementation.
The GENIUS Act passed Congress in July 2025, and stablecoin rewards were among its most contested issues. The OCC had proposed a presumption that certain third-party arrangements violated the yield ban. Its final rule dropped that presumption and declined a broader anti-circumvention standard, the ABA said.
The ABA warned that the gaps risk erasing Congress’s distinction between payment stablecoins and traditional bank deposits. It said that distinction protects funds banks use to make loans that drive the US economy. The group acknowledged “several positive steps” but said the yield provisions remain flawed.
Reactions diverged. The Blockchain Association approved the change, arguing the OCC brought the rule closer to the statutory text. The Bank Policy Institute sided with the ABA, saying the omitted presumption “replaces clarity with ambiguity” and risks deposit flight.
The dispute continues amid broader crypto market structure talks. Stablecoin rewards remain scrutinized in the Digital Asset Market Clarity Act, which is in limbo after a failed Senate procedure vote last month. Lawmakers and interest groups are still debating how yield rules should apply.
Other agencies, including the Federal Reserve and Treasury, are expected to release GENIUS-related rules covering their stablecoin oversight. The ABA and state banking groups have also pushed back on CLARITY Act yield provisions. The OCC’s final rule will take effect as the GENIUS Act is implemented in January 2027.
