The American Bankers Association (ABA) has criticized new rules issued by the Office of the Comptroller of the Currency (OCC) for payment stablecoins, arguing that the regulator's approach departs from what Congress intended when it passed the GENIUS Act.

The OCC, an independent bureau of the U.S. Treasury Department that charters and supervises national banks, recently finalized rules implementing the GENIUS Act. The rules govern two core activities under the new regime: how payment stablecoins are issued and how they are held in custody.

Stablecoins are digital tokens designed to hold a steady value against a reference asset, typically the U.S. dollar, and they are widely used in crypto trading and payments.

In a statement released Wednesday and published on its website, the ABA acknowledged that the final rules contained “several positive steps,” but the group remained critical of the provisions dealing with stablecoin yield.

OCC Drops Proposed Yield Safeguard

The GENIUS Act bans payment stablecoin issuers from paying yield, a restriction that has no parallel for traditional bank deposits, which can pay interest to their customers. To enforce that ban, the OCC had proposed a rule that would have presumed certain third-party arrangements broke the law. That provision was removed from the final version, and the ABA said the change opens a path for issuers to offer rewards through partners.

“The final rule removes the OCC's originally proposed safeguards that would have addressed indirect arrangements involving affiliates, exchanges and other distribution partners,” the ABA said.

The group added that “payment stablecoin issuers can provide economically equivalent yield while technically avoiding the statutory prohibition.” It also noted that the OCC declined to adopt a broader presumption against arrangements designed to get around the ban.

According to the ABA, these gaps “risk undermining the distinction Congress drew between payment stablecoins and traditional bank deposits.” The association warned the outcome could threaten the funds banks rely on to make loans, tying the yield question directly to the deposit base that supports bank lending.

Industry Groups Split on the Change

Not every group agreed with the ABA's assessment. The Blockchain Association, which represents crypto companies, supported the OCC's decision, saying the regulator brought “the final rule more closely in line with the statutory text.”

The Bank Policy Institute, another banking advocacy group, largely sided with the ABA. It said “the decision to omit the yield presumption replaces clarity with ambiguity,” and added that the change “puts the banking system and its customers at risk of deposit flight.”

Stablecoin rewards were a key point of debate both before and after the GENIUS Act passed Congress in July 2025, and the issue continues to draw attention in discussions over separate legislation. One such bill, the Digital Asset Market Clarity Act, would establish rules for the structure of the crypto market. It is currently stalled after a procedural vote failed in the Senate last month.

The OCC finalized its rules ahead of the GENIUS Act's implementation in January 2027. Other agencies, including the Federal Reserve and the Treasury, are expected to release their own stablecoin rules under the law, meaning key elements of the regime remain subject to further definition. How those agencies treat the yield question, and whether the stalled Digital Asset Market Clarity Act advances, remain open questions as the new regime takes shape.

This article is based on the original report published by Blockonomi.