The Bank Policy Institute has renewed calls for the Office of the Comptroller of the Currency to provide clearer guidance on stablecoin reward arrangements following the finalization of new regulations.
In an October 24 newsletter, BPI objected to how the OCC will judge arrangements that pay stablecoin holders through third parties. The banking trade group specifically criticized the removal of a proposed presumption covering certain issuer arrangements, arguing that the replacement approach lacks a clear public process for explaining decisions.
BPI reiterated concerns from its October 21 response to the final rule. The organization contends that case-by-case decisions create uncertainty for stablecoin issuers seeking to understand regulatory requirements.
Implementation Timeline
The OCC's broader GENIUS Act rule is set to take effect on January 18, 2027. The rule establishes a framework covering reserve backing, redemption, and risk management. The OCC indicated that separate work will address anti-money-laundering and sanctions requirements.
Regulatory Interpretation Challenges
The dispute centers on how the issuer yield prohibition will be applied in practice. A key distinction exists between reserve income from a payment token and customer incentives offered elsewhere in its distribution chain.
Determining who pays, who ultimately funds the arrangement, and what behavior qualifies for payment can be more significant than the label applied to the transfer. Two different product structures may both benefit users but serve different commercial purposes and funding models.
Published reasoning on regulatory decisions would help other providers understand which features regulators regard as decisive. Without detailed explanations, firms may struggle to determine whether their own structures comply with the rule.
The next useful evidence on the issue will come from supervisory guidance and disclosed regulatory decisions rather than competing interpretations of the rule's requirements.
