OCC PROPOSES STABLECOIN FRAMEWORK UNDER GENIUS ACT

Summary from the TLDR Crypto newsletter

The OCC released a 376-page Notice of Proposed Rulemaking implementing the GENIUS Act for payment stablecoin issuers, with a central provision establishing a rebuttable presumption that yield or interest payments routed to stablecoin holders through intermediaries constitute a violation of the Act's prohibitions. This directly imperils arrangements such as the Circle-Coinbase partnership offering USDC rewards, with the OCC specifically flagging close financial relationships between issuers and crypto platforms as potential circumvention mechanisms. Industry response has been largely negative, though legal observers note interpretive ambiguity that could provide flexibility. Public comments are due within 60 days.