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Former Treasury Officials & Crypto Execs - GENIUS Act Stablecoin Yield

Banks Lose Stablecoin Yield Fight as OCC Final GENIUS Act Rule Keeps Crypto Rewards Alive The OCC's 721-page GENIUS Act rule went final on October 21, and banks did not get the limit on stablecoin rewards they asked for. Office of the Comptroller of the Currency kept one ban in place. Platforms such as Coinbase and Kraken can't pay you just for holding, using or keeping a stablecoin, Roll Call reported. Every other reward will be judged case by case. The draft rule had treated these deals as illegal unless the industry proved otherwise, and the final rule dropped that test. The two sides read it very differently: 1. American Bankers Association CEO Rob Nichols said the rule "will preserve the status quo for crypto platforms despite Congress's clear intent to protect local lending." 2. Blockchain Association chief policy officer Lindsay Fraser said, "We are especially grateful that the OCC listened to the industry." Banks care because they fund local loans with deposits, and they fear savers will move that money into stablecoins that pay rewards. The banks' next move is the Senate. The Clarity Act would let regulators stop yield payments if banks with under $10 billion in assets lose enough deposits to cause them serious harm. The rule takes effect on January 18, 2027. If an exchange paid you more on USDC than your bank pays on savings, would you move your savings out of the bank? I'd like to hear from Faryar Shirzad, Rebeca Romero Rainey, Simon Taylor and Austin Campbell. #Stablecoins #GENIUSAct #Fintech #Banking

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