Banking Group Accuses OCC of Undermining Congress on Stablecoin Rewards Rule

stablecoin rewards rule — The American Bankers Association (ABA) has formally accused the Office of the Comptroller of the Currency (OCC) of undermining congressional authority by finalizing a rule on bank-issued payment stablecoins without addressing third-party rewards programs.

The ABA’s criticism centers on the OCC’s decision not to provide guidance on how banks can partner with third parties to offer rewards, such as cashback or points, on stablecoin transactions. The banking group argues this omission creates legal uncertainty and could stifle innovation, putting regulated banks at a competitive disadvantage against non-bank crypto firms.

In a letter to the OCC, the ABA stated the regulator’s final rule “undermines Congress’s careful and comprehensive approach” to digital assets. The dispute reignites the long-standing tension between the traditional banking sector and the cryptocurrency industry over the future of payment systems and regulatory jurisdiction.

The OCC’s rule, finalized earlier this month, establishes a framework for national banks and federal savings associations to issue payment stablecoins and engage in related activities. By leaving the rewards question unanswered, the regulator has effectively deferred a key competitive issue, setting the stage for further debate as banks seek to participate in the digital asset economy.