OCC Finalizes GENIUS Act Rule Without Safe Harbor for Existing Rewards

The Office of the Comptroller of the Currency (OCC) finalized its first GENIUS Act rule, leaving stablecoin rewards without automatic grandfathering or a safe harbor when it takes effect Jan. 18, 2027.

The rule covers permitted payment stablecoin issuers and foreign payment stablecoin issuers under OCC jurisdiction, along with certain custody activities at entities it supervises. It bars an issuer from paying yield solely because a customer holds, uses or retains a payment stablecoin.

Some third-party rewards may fall outside the ban if they depend partly on factors beyond holding or using a stablecoin. The OCC will assess existing programs individually, so the rule grants no blanket approval to rewards already in place.

The rule excludes Bank Secrecy Act, anti-money laundering and sanctions requirements, which the OCC plans to address separately with the Treasury Department. The agency will announce in a separate release when it begins accepting issuer applications and waiver requests. The act and rule take effect Jan. 18, 2027.