OCC's GENIUS Act Implementation Draws Criticism from American Bankers Association Over Congressional Intent
The American Bankers Association and other banking groups are challenging the Office of the Comptroller of the Currency's final stablecoin regulations, citing concerns about yield provision modifications.
An influential advocacy organization representing banks across the United States has voiced opposition to the Office of the Comptroller of the Currency's (OCC's) newly finalized regulatory framework governing the issuance and custodial services of payment stablecoins, contending that the agency's approach contradicts what legislators originally intended.
Through a statement released on Wednesday, the American Bankers Association (ABA) acknowledged that the OCC's finalized regulations implementing the GENIUS Act contained "several positive steps," yet the banking organization maintained strong objections to specific components addressing stablecoin yield. The regulatory agency eliminated a proposed provision that would have created a presumption declaring certain third-party arrangements as violations of the legislation's prohibition on yield payments.
"The final rule removes the OCC's originally proposed safeguards that would have addressed indirect arrangements involving affiliates, exchanges and other distribution partners," said ABA. "As a result, payment stablecoin issuers can provide economically equivalent yield while technically avoiding the statutory prohibition. The OCC also declined to adopt a broader presumption against arrangements designed to circumvent the ban."
The group added:
"Those gaps risk undermining the distinction Congress drew between payment stablecoins and traditional bank deposits, threatening the funds banks use to make the loans that drive the US economy."
The matter of stablecoin rewards represented a central point of contention among policymakers and advocacy organizations both during the period preceding and following GENIUS's passage through Congress in July 2025, and the topic remains under intense examination within ongoing deliberations surrounding the Digital Asset Market Clarity Act, a piece of legislation focused on cryptocurrency market structure that currently remains stalled following an unsuccessful procedural vote in the Senate last month.
In a noteworthy contrast, the Blockchain Association expressed support for the modification to the yield prohibition, contending that the OCC "[brought] the final rule more closely in line with the statutory text." The Bank Policy Institute, representing another major banking industry advocacy organization, predominantly aligned its position with ABA, asserting that "the decision to omit the yield presumption replaces clarity with ambiguity and puts the banking system and its customers at risk of deposit flight."
The OCC completed its regulatory framework in advance of the GENIUS Act's scheduled implementation in January 2027. Additional federal agencies are anticipated to publish their own rules pertaining to GENIUS in areas falling under their respective regulatory authority over stablecoins, including the Federal Reserve and Treasury.