OCC proposal seeks to settle stablecoin yield debate, clearing way for CLARITY

CoinTelegraph

by Christina Comben

February 26, 2026

AI-Generated Deep Dive Summary

The U.S. Office of the Comptroller of the Currency (OCC) has released a 376-page proposal aimed at implementing the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. This move seeks to address the ongoing debate surrounding stablecoin yields by introducing stricter regulations on payment stablecoins under its jurisdiction. The proposal prohibits supervised entities from offering any form of interest or yield—whether in cash, tokens, or other forms—"solely in connection with the holding, use, or retention" of a payment stablecoin. This aligns with Section 4(a)(11) of the GENIUS Act and aims to bring clarity to the controversial practice of rewarding users for holding or using stablecoins. The proposal also introduces a rebuttable presumption against issuer-affiliate reward structures, which have been widely used in decentralized finance (DeFi) platforms. These structures often involve incentives provided by issuers or their affiliates to encourage user participation. The OCC’s rules would effectively limit such practices, ensuring that any rewards are not directly tied to the holding or retention of stablecoins. This shift could significantly impact DeFi projects and other platforms that rely on yield-generating mechanisms to attract users. The proposal is now open for public comment for 60 days following its publication. The OCC’s move reflects a broader regulatory push to establish clearer guidelines for stablecoin issuers and ensure compliance with federal regulations. While the rules apply only to supervised entities under the OCC’s jurisdiction, they could set a precedent for other regulators and influence market practices more broadly. For crypto enthusiasts and investors, this development matters because it addresses one of the most contentious issues in the DeFi space: the use of yield incentives. By limiting such rewards, the OCC aims to reduce risks associated with speculative trading and ensure that stablecoins are primarily used as a medium for payments rather than

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Originally published on CoinTelegraph on 2/26/2026