The Office of the Comptroller of the Currency (OCC), a key US banking regulator, has proposed new rules that could restrict certain stablecoin rewards programs. These preliminary rules, detailing the implementation of the GENIUS Act, are now open for a 60-day public comment period.
Experts are divided on the potential impact. Some believe the proposed language could affect Coinbase's arrangement with Circle for USDC rewards, where users currently earn approximately 4% yield. This revenue sharing from yield generated on USDC reserves was a key growth driver for Coinbase in 2025, contributing significantly to its $1.3 billion in stablecoin revenue last year.
However, others argue the rules are not final and may not outlaw top stablecoin rewards programs. While some crypto policy leaders suggest Coinbase might need to adjust its program, they also highlight the complexity of the rule and potential workarounds. Circle's head of global policy and CEO have commended the OCC's proposal, viewing it as a step towards accelerating US leadership in financial system transformation.
Sources within the banking industry express that the proposal may not fully address their concerns. They have been pushing for permanent restrictions on stablecoin yields to prevent siphoning customers from traditional bank accounts. The outcome remains uncertain as negotiations between banking and crypto representatives continue.