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American Bankers Association says OCC stablecoin rules undermine Congress

The ABA has criticised the OCC's final GENIUS Act rules for dropping safeguards on stablecoin yield, warning the gap could blur the line between stablecoins and bank deposits.

Why it matters: The dispute over stablecoin yield shapes how far issuers and their distribution partners can reward holders, a question that also hangs over the CLARITY Act.

InvestIn.News NewsDesk · 1 min read
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Picture from Cointelegraph for: American Bankers Association says OCC stablecoin rules undermine Congress
Image: Cointelegraph
Original reporting: Turner Wright, Cointelegraph

Key points

  • The ABA said the OCC removed a proposed presumption that certain third-party yield arrangements broke the law's ban.
  • The Blockchain Association backed the change, saying the rule now sits closer to the statutory text.

The American Bankers Association says the OCC's final rules on payment stablecoin issuance and custody undermine Congress's intent, Cointelegraph reports. In a Wednesday notice, the banking lobby group said the regulator's interpretation of the GENIUS Act left gaps around stablecoin yield.

The Bank Policy Institute largely backed the ABA, saying the omitted yield presumption replaces clarity with ambiguity and exposes banks to deposit flight. The Blockchain Association took the opposite view, arguing the OCC brought the final rule closer to the statutory text.

What to watch: The Federal Reserve and Treasury are expected to release their own GENIUS-related stablecoin rules.

Read the full story on Cointelegraph

Live updates on NewsFeeds:RegulationStablecoinsDesk editor: Keshav Aggarwal (accountable for this page; this summary was not edited by hand)

How this was produced: an AI model wrote this summary of Cointelegraph’s report, which we credit and link above. Read our Editorial and AI policy. Spotted a mistake? See Corrections.

Not investment advice. Read the risk disclaimer.

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