US Banks Critique OCC's Stablecoin Rules, Claim They Contradict Congressional Intent

In a statement released Wednesday, the American Bankers Association (ABA) acknowledged that the OCC’s final regulations, which implement the GENIUS Act, include some positive elements. However, the ABA expressed serious reservations about provisions related to stablecoin yield. Specifically, the OCC dropped a provision that initially assumed certain third-party arrangements would violate the statutory ban on yield payments.

The ABA explained that the final rule removed initial protections proposed by the OCC, which were meant to address indirect agreements involving affiliated parties, exchanges, and other distribution partners. Consequently, payment stablecoin issuers are able to offer economically comparable yields in ways that technically circumvent the prohibition. Additionally, the OCC declined to apply a broader presumption aimed at preventing agreements designed to evade the yield ban.

The banking group further stated:

These regulatory gaps risk eroding the clear distinction Congress established between payment stablecoins and traditional bank deposits. This threatens the funds that banks rely on to provide loans, which are essential drivers of the US economy.

The issue of paying yield on stablecoins has been a focal point in legislative and stakeholder debates prior to and following the passage of the GENIUS Act in July 2025. It continues to attract scrutiny amidst ongoing discussions about the Digital Asset Market Clarity Act—a cryptocurrency market regulatory bill currently stalled after a failed Senate procedural vote last month.

Interestingly, the Blockchain Association supported the OCC’s removal of the yield prohibition presumption, stating that the final rule better aligns with the statute’s text. Meanwhile, the Bank Policy Institute, another bank industry advocacy group, mostly agreed with the ABA’s criticism, arguing that the OCC’s decision to omit the yield presumption replaces clarity with ambiguity and could expose the banking system and its customers to risks such as deposit withdrawals.

The OCC issued its rules ahead of the GENIUS Act’s enforcement date in January 2027. Other federal agencies, including the Federal Reserve and the Treasury Department, are also expected to promulgate rules concerning stablecoins under their jurisdiction as required by the GENIUS Act.

The American banks’ response to the OCC rules highlights critical tensions in stablecoin regulation that could impact the stability and lending capacity of the US banking system. This debate could influence how digital assets are integrated into the broader financial landscape going forward.