The Office of the Comptroller of the Currency (OCC) has released a proposed rulemaking under the GENIUS Act concerning stablecoins. While most provisions address standard regulatory details like custody and capital requirements, the sections on stablecoin yield have generated significant ambiguity.
The proposal states that permitted payment stablecoin issuers must not pay holders any interest or yield solely for holding, using, or retaining a stablecoin. It acknowledges that issuers might attempt to facilitate such payments through third-party arrangements. The OCC would presume these payments are for yield purposes if a contract exists, defining third parties as entities providing yield as a service. However, companies can rebut this presumption with evidence their contractual relationship does not meet these terms.
Industry experts suggest that companies like Coinbase, Circle, PayPal, and Paxos may need to adjust their operational terms. The ambiguity surrounding affiliate definitions and white-label relationships could also affect yield payments, depending on contract specifics. This issue is also a point of contention in the ongoing market structure legislation talks. The OCC's proposal might influence how Congress addresses stablecoin yield in future laws.