The OCC has approved the final rules of the GENIUS Act, prohibiting stablecoin issuers from paying interest or income to users simply for holding their tokens. The rules, taking effect on January 18, 2027, still allow third-party platforms such as Coinbase, Kraken and PayPal to offer rewards on stablecoin balances, subject to case-by-case scrutiny by regulators. Traditional banks have therefore failed to secure a complete ban on rewards, while issuers gain greater freedom to invest their reserves in long-term US government bonds. Any redemption requests exceeding 10% of a stablecoin’s total supply must be reported to the OCC within 24 hours, and the Federal Reserve and FDIC still need to issue their own rulemaking packages.
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