Bank Policy Institute Seeks OCC Clarity on Stablecoin Rewards

BPI Calls for Transparency in Stablecoin Reward Assessments

The Bank Policy Institute (BPI) has renewed its call for clarity from the Office of the Comptroller of the Currency (OCC) regarding the assessment of stablecoin reward programs. The BPI, representing banks, criticized the OCC’s approach to arrangements that provide benefits to stablecoin holders through third parties in its October 24 newsletter.

The core of the dispute lies in the implementation of the issuer yield prohibition within the OCC’s final stablecoin rule. BPI argues that the OCC’s case-by-case decision-making process lacks transparency and a clear path for public explanation. The organization had previously objected to the removal of a proposed presumption covering certain issuer arrangements, as outlined in their October 21 response to the final rule.

The OCC’s broader GENIUS Act rule is set to take effect on January 18, 2027, and encompasses reserve backing, redemption, and risk management. However, BPI contends that the current framework fails to adequately address the distinction between a payment token’s reserve income and customer incentives offered within the distribution chain. The BPI highlights that the regulatory interpretation hinges on identifying the funding source and the behavior being incentivized, rather than simply labeling a transfer as a “reward” or “yield.”

The BPI suggests that published reasoning behind OCC decisions would be valuable for other firms seeking to understand acceptable product structures. Without such detail, companies may struggle to assess compliance. The debate comes as the industry explores increasingly complex product designs, such as SoFi’s tokenized-deposit plan, which present unique regulatory considerations. The OCC has not yet issued supervisory guidance or disclosed decisions related to the new rule.

Source: NewsBTC