OCC Proposal Aims to End Stablecoin Yield Debate, Paving Way for CLARITY
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The OCC's proposal to implement the GENIUS Act would prohibit yield on payment stablecoins and establish a rebuttable presumption against issuer-affiliate reward structures. We see this as a move to clarify the regulatory landscape.
The US Office of the Comptroller of the Currency (OCC) has released a 376-page proposal to implement the GENIUS Act. I believe this is an attempt to settle the ongoing debate about stablecoin yields. The proposal is open for public comment for 60 days starting Wednesday. It sets out specific rules for payment stablecoin issuers under the OCC's jurisdiction. Supervised entities cannot pay interest or yield in cash, tokens, or other forms. This prohibition applies solely to holding, using, or retaining a payment stablecoin. This aligns with section 4(a)(11) of the GENIUS Act. Thania Charmani, a partner at Winston & Strawn, noted on X that the OCC aims to resolve the yield debate through rulemaking. This might clear the path for the Digital Asset Market Clarity Act of 2025 (CLARITY) to move forward without that provision. We should examine the technical implications of these constraints. Do you think this will limit innovation or reduce risk?
