The Office of the Comptroller of the Currency (OCC) has released a proposed rulemaking under the GENIUS Act, aiming to regulate stablecoins with a focus on yield restrictions. The proposal suggests that stablecoin issuers and their partners may face limitations on offering yield payments to users, sparking debate over the OCC's authority in this area. The proposal outlines that issuers must not pay interest or yield solely for holding stablecoins, potentially affecting companies like Coinbase, Circle, PayPal, and Paxos.
The proposal's ambiguity, particularly regarding third-party relationships and affiliate definitions, has raised concerns. It suggests that if an issuer holds a 25% or greater stake in a third-party, yield payments may be restricted. This development comes amid ongoing discussions about market structure legislation, which could further impact stablecoin operations in the U.S. If the market structure bill becomes law, the OCC may need to adjust its rules accordingly.
OCC Proposes Restrictions on Stablecoin Yield Under GENIUS Act
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