Banking Groups Criticize OCC’s Final GENIUS Rules on Stablecoin Yield

GENIUS rules — The American Bankers Association has criticized the Office of the Comptroller of the Currency’s finalized rules for the GENIUS Act, arguing they undermine congressional intent by creating loopholes for stablecoin yield.

In a notice published Wednesday, the ABA stated that while the OCC’s final rules included “several positive steps,” the removal of a key provision creates a significant gap. The dropped provision would have established a presumption that certain third-party arrangements violated the law’s ban on yield payments to stablecoin holders.

“The final rule removes the OCC’s originally proposed safeguards that would have addressed indirect arrangements involving affiliates, exchanges and other distribution partners,” the ABA said. The group warned this allows issuers to “provide economically equivalent yield while technically avoiding the statutory prohibition,” threatening the distinction Congress intended between payment stablecoins and traditional bank deposits.

The Bank Policy Institute largely sided with the ABA, stating the omission “replaces clarity with ambiguity and puts the banking system and its customers at risk of deposit flight.” In contrast, the Blockchain Association approved of the change, arguing it brought the rule more closely in line with the statutory text. The OCC finalized its rules ahead of the GENIUS Act’s full implementation scheduled for January 2027.