At a glance
- The rule takes effect January 18 and governs federal banking organizations' payment stablecoin activities.
- A rewards program that pays solely for holding a payment stablecoin would appear to fall inside the statutory ban.
- Federal banking organizations need to determine whether payment stablecoin rewards arrangements fall inside the statutory ban before the January 18 effective date.
The Office of the Comptroller of the Currency has issued the first federal banking final rule under the GENIUS Act, adding a sign-off requirement for payment stablecoin rewards. The rule takes effect January 18 and governs federal banking organizations' payment stablecoin activities. It offers no examples of which rewards arrangements cross the statutory ban on payments made solely for holding, use, or retention of a payment stablecoin.
A rewards program that pays solely for holding a payment stablecoin would appear to fall inside the statutory ban. A program that ties rewards to transaction activity or other services may be structured outside it.
Federal banking organizations need to determine whether payment stablecoin rewards arrangements fall inside the statutory ban before the January 18 effective date. Whether the OCC will later issue interpretive guidance remains an open question.
Reported by The Wrap desk from Digital Capital Daily coverage. Published . Corrections