ABA Slams OCC Stablecoin Rule Over Dropped Rewards Limits

The ABA opposes the OCC’s decision to review third-party stablecoin rewards case by case, citing potential deposit flight and reduced bank lending. The OCC grants stablecoin issuers more reserve flexibility while retaining one-to-one backing, liquidity safeguards and redemption reporting requirements. The final GENIUS Act rule takes effect January 18, 2027, while anti-money laundering and sanctions compliance proposals remain pending. The American Bankers Association (ABA) has criticized the Office of the Comptroller of the Currency (OCC) for dropping proposed restrictions on stablecoin rewards. The regulator’s final GENIUS Act rule leaves third-party reward programs subject to case-by-case review.