U.S. regulator's GENIUS pitch puts dark cloud over crypto sector's stablecoin model
The OCC's proposed stablecoin rules, under the GENIUS Act framework, may limit third-party rewards, pressuring models like the Circle-Coinbase arrangement.Summary
The U.S. Office of the Comptroller of the Currency (OCC) has proposed 376 pages of rules to govern domestic stablecoin issuers under the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. These proposals cast doubt on the industry's assumption that the GENIUS Act's ban on yield or rewards from issuers does not extend to third parties offering their own reward programs on those tokens, such as Coinbase.
The OCC proposal suggests that close ties between issuers and platforms handling tokens make it highly likely that yield payments are an attempt to evade the prohibition on interest and yield payments, although firms can rebut this presumption with evidence. Industry insiders and policy experts note that the proposed language seems uncertain, with some suggesting there is "play in the joints" that might allow continued rewards, while others feel the OCC has overreached.
This regulatory action complicates the ongoing legislative negotiations for the Digital Asset Market Clarity Act, where stablecoin yield has been a major point of contention between crypto advocates and U.S. bankers. If finalized, the OCC's rules could eliminate one sticking point in the Clarity Act, but the industry plans to fight the proposed rulemaking while legislative efforts continue.
(Source：CoinDesk)