Federal banking regulators are moving to reshape digital dollar markets, with a sweeping stablecoin yield prohibition now central to Washington’s emerging framework.
OCC outlines zero-yield standard for GENIUS Act implementation
The Office of the Comptroller of the Currency (OCC) has released an extensive regulatory proposal to implement the GENIUS Act and eliminate all yield payments on payment stablecoin holdings. The document sets out detailed operational requirements for authorized issuers and launches a 60-day public comment period. Moreover, the initiative signals a fundamental shift in how payment stablecoins will operate under federal banking supervision.
Under the draft rules, authorized payment stablecoin issuers are explicitly barred from distributing any form of yield tied to stablecoin ownership or transaction activity. The framework goes further by creating a regulatory presumption that indirect or affiliate-based reward structures could violate GENIUS prov
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