OCC Finalizes Stablecoin Framework with New Rule

This year, lawmakers have sought to establish a definitive framework for the use of digital assets. Initial versions of related legislation, known as the Clarity Act, prompted significant debate over whether crypto firms should be allowed to offer rewards on stablecoin balances that are akin to interest from bank deposits. Banking trade organizations expressed concerns that allowing stablecoin issuers to bypass a ban through third-party arrangements could lead to a substantial outflow of funds from the banking sector.

In May, the Senate Banking Committee approved the Clarity Act, but the initiative ultimately stalled due to worries about potential conflicts of interest. Notably, President Donald Trump reported $1.4 billion in income from his family's crypto businesses in 2025, leading to calls from Democrats for stricter measures to prevent government figures from benefiting from crypto-related regulations.

The OCC's new rule addresses the question of stablecoin yields, establishing that direct payments of yield to customers from issuers are prohibited. However, the OCC stated that it will assess yield or reward arrangements with third parties on a case-by-case basis. It noted that payments to stablecoin holders through intermediaries could occur if linked to the holding, use, or retention of the stablecoins for valid reasons.

The rule clarifies that transaction-based payments not classified as interest or yield, nor made solely for holding stablecoins, are not restricted. It does not cover guidelines related to the Bank Secrecy Act, anti-money laundering, or Office of Foreign Assets Control sanctions, which will be addressed in separate rulemaking efforts in conjunction with the Treasury Department.

The OCC also indicated it will later announce the process for accepting and processing applications and waiver requests from interested parties. The agency stated that due to the evolving nature of the industry, it will continue to observe its development and adjust supervisory and regulatory frameworks for payment stablecoin issuers as necessary.

Treasury Secretary Scott Bessent described the final rule as a “watershed moment in American finance,” likening it to the National Currency Act of 1863 that established a nationwide framework for bank-issued currency. Bessent remarked that this rule positions the U.S. as the leading nation in the crypto sphere.

Comptroller of the Currency Jonathan Gould emphasized that the OCC is establishing clear, practical standards for payment stablecoin innovation, focusing on reserve backing, redemption, and risk management. He noted that the OCC draws upon its extensive supervisory experience to foster responsible growth and innovation within the industry.

In response, the Independent Community Bankers of America expressed the need to ensure that OCC policies mitigate risks posed by payment stablecoins to community bank lending and financial stability. The group cited research predicting that widespread adoption of payment stablecoins could lead to a decline of at least $850 billion in community bank lending in the coming years. They urged the OCC to reinforce consumer protections and operational limits for stablecoin issuers.