ABA Statement on OCC's Final Rule Implementing the GENIUS Act

"The American Bankers Association appreciates the OCC's work to implement the GENIUS Act and establish a framework for payment stablecoin activities. While the rule includes several positive steps, we disagree with the OCC’s decision to move away from its original position on stablecoin yield. The result is a final rule that will preserve the status quo for crypto platforms despite Congress's clear intent to protect local lending.

"The final rule removes the OCC’s originally proposed safeguards that would have addressed indirect arrangements involving affiliates, exchanges and other distribution partners. 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.

“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 U.S. economy. And while we appreciate the OCC's recognition that additional supervisory experience may inform future action in this area, attempting to address deposit flight and economic harm after it has occurred is the wrong approach. We will continue to work with regulators and policymakers to ensure the GENIUS Act is implemented in a manner that supports innovation while preserving financial stability, consumer protection and fair competition.”

Additional Background
ABA has worked closely with Congress and federal regulators throughout the development and implementation of the GENIUS Act. Below are selected highlights from ABA's recent advocacy efforts on stablecoin policy and regulation:
 

• August 2026: ABA Viewpoint: The GENIUS Act Rules Are (Almost) Here. Here’s What Banks Should Do – ABA outlined key regulatory issues for banks as agencies implement the GENIUS Act and opportunities for banks to participate in the emerging stablecoin ecosystem. 
• June 2026: Letter to the FDIC on GENIUS Act Requirements and Standards – ABA urged coordination among regulators and harmonization of e federal stablecoin framework.
• May 2026: Joint Trades Letter on Payment Stablecoin Yield – ABA and other financial trade associations urged lawmakers to strengthen provisions addressing yield on payment stablecoins and the risks of deposit flight and reduced lending capacity.
• May 2026: Letter to the OCC on the GENIUS Act Implementation NPRM – ABA emphasized that banks of all sizes stand ready to serve as issuers, custodians and infrastructure providers in the emerging payment stablecoin ecosystem.
• April 2026: The CEA Studied the Wrong Question on Stablecoin Yield and Community Banks – ABA economists explained why allowing yield on payment stablecoins could accelerate deposit migration from community banks, increase funding costs and reduce local lending. 
• February 2026: Are Payment Stablecoins Too Risky to Be Used for Payments? – ABA economists examined the liquidity and run risks payment stablecoins could pose during periods of market stress.
• January 2026: ABA Community Bankers Council Letter Urging Senators to Close the Stablecoin Loophole – Community bank leaders warned that indirect yield or rewards could draw deposits away from banks and reduce lending in local communities.
• December 2025: Joint ABA and State Bankers Associations Letter to Congress on Stablecoin Rewards – ABA and 52 state bankers associations urged Congress to clarify and enforce the GENIUS Act's prohibition on interest, yield and rewards for stablecoin holders.
• November 2025: Joint Trades Letter to Treasury on GENIUS Act Implementation – ABA and other financial trade organizations submitted recommendations on implementation of the law, including broad application of the statutory prohibition on interest and yield, safeguards against regulatory arbitrage and strong illicit-finance protections.
• August 2025: Joint ABA and State Bankers Associations Letter Regarding Market Structure Recommendations – ABA urged lawmakers to address several GENIUS Act loopholes, including extending the prohibition on interest and yield to exchanges, brokers, dealers and affiliates of stablecoin issuers.
• July 2025: Letter to House Members re: GENIUS Act, Stablecoin Legislation – ABA recommended strengthening stablecoin legislation by addressing interest and rewards payments, nonfinancial company participation, state regulatory authority and Bank Secrecy Act compliance obligations.
• July 2025: ABA Statement on House Passage of the GENIUS Act – ABA welcomed progress on creating a stablecoin framework while emphasizing the need to protect bank lending and economic growth.
• July 2025: How Stablecoins Could Affect Borrowing Costs for the Government, Businesses and Households – ABA economists analyzed how stablecoin growth could increase bank funding costs and reduce credit availability for households and businesses as deposits migrate from the banking system.
• June 2025: ABA Statement on Senate Passage of the GENIUS Act – ABA welcomed Senate passage of the GENIUS Act and highlighted improvements made to the legislation during the legislative process.