The American Bankers Association is challenging key parts of the US Office of the Comptroller of the Currency’s finalized rules for payment stablecoins, arguing that the framework could allow issuers to offer rewards that are economically similar to yield while avoiding a statutory prohibition.
Banking groups object to yield provisions
According to Cointelegraph, the ABA said the OCC’s final rules for stablecoin issuance and custody contained “several positive steps,” but criticized the regulator’s treatment of arrangements involving stablecoin rewards.
The OCC removed a provision from its proposal that would have created a presumption that certain third-party structures breached the GENIUS Act’s ban on yield payments. The deleted safeguard addressed arrangements involving affiliates, exchanges and other distribution partners.
The ABA said the change could allow payment stablecoin issuers to provide an economic equivalent of yield while remaining technically outside the wording of the prohibition. It also criticized the OCC for not adopting a wider presumption against structures designed to bypass the ban.
Payment stablecoins are digital tokens intended to maintain a stable value, generally for use in payments and transfers. Yield rules matter because rewards linked to holding such tokens could make them more competitive with bank deposits, which banks use as a source of funding for lending.
The ABA warned that the OCC’s approach could weaken the distinction Congress made between payment stablecoins and traditional deposits. It said this could put pressure on the funds banks rely on to make loans.
Industry reaction is divided
The response from financial-sector groups has not been uniform. The Bank Policy Institute largely supported the ABA’s position, saying that removing the yield presumption replaced clarity with ambiguity and could expose banks and their customers to the risk of deposit flight.
The Blockchain Association took the opposite view. It supported the OCC’s decision, saying the final rule was brought closer to the statutory language of the GENIUS Act.
The debate over stablecoin rewards began before and continued after Congress passed the GENIUS Act in July 2025. It remains relevant as lawmakers and industry groups discuss the Digital Asset Market Clarity Act, a broader cryptocurrency market-structure bill that is currently stalled after a Senate procedural vote failed last month.
Rules precede January 2027 implementation
The OCC completed its rules ahead of the GENIUS Act’s implementation in January 2027. The law’s broader regulatory framework is not yet represented solely by the OCC’s action: other federal agencies are expected to issue rules covering matters within their responsibilities, including the Federal Reserve and the Treasury Department.
The disagreement therefore concerns both the immediate interpretation of the stablecoin law and how its restrictions will operate across the wider US financial system. Banks are seeking tighter safeguards around indirect rewards, while crypto-industry representatives have argued that the final language should remain closely tied to the text Congress enacted.
Moneyiar market picture
Moneyiar data at 23:19 on October 22, 2026, showed Stable (STABLE) at $0.0256071983, down 2.45% over 24 hours and 6.11% over seven days. Genius Terminal (GENIUS) was $0.3001015235, down 3.22% in 24 hours and 0.13% over seven days.
Vision (VSN) stood at $0.0393111772, down 2.37% over 24 hours and 7.38% over seven days, while Comedian (BAN) was $0.0573034386, down 3.65% over 24 hours but up 6.48% over seven days. These market figures are separate from the OCC’s regulatory action.
