American Bankers Association: OCC’s GENIUS rules ‘undermine’ US Congress

{"heading_1":"GENIUS Act and Stablecoin Yield Provisions","heading_2":"OCC's Final Rules and ABA's Criticism","heading_3":"Blockchain Association's Position","paragraph_1":"The American Bankers Association (ABA) has expressed concern over the Office of the Comptroller of the Currency (OCC)’s finalized rules implementing the GENIUS Act, particularly regarding provisions on stablecoin yield.","paragraph_2":"The ABA argues that the OCC’s final rules go against Congress’ intent, specifically regarding the removal of safeguards that would have addressed indirect arrangements involving affiliates, exchanges, and other distribution partners.","paragraph_3":"The ABA claims that the removal of these safeguards risks undermining the distinction Congress drew between payment stablecoins and traditional bank deposits, which are crucial for driving the US economy.","paragraph_4":"The Blockchain Association, on the other hand, approved of the change to yield prohibition, stating that the OCC brought the final rule more closely in line with the statutory text.","paragraph_5":"The Bank Policy Institute, another banking industry advocacy group, largely sided with the ABA, emphasizing the risks of deposit flight and the need for clarity in the final rule.","paragraph_6":"The GENIUS Act, which was passed in July 2025, aimed to regulate payment stablecoins and their issuance and custody. The OCC finalized its rules ahead of the GENIUS Act’s implementation in January 2027, with other government departments expected to release rules on GENIUS-related matters, including the Federal Reserve and Treasury.","paragraph_7":"The GENIUS Act and its related discussions have been a point of contention, with the Digital Asset Market Clarity Act currently in limbo after a failed procedure vote in the Senate last month.","paragraph_8":"The ABA’s criticism of the OCC’s final rules underscores the ongoing debate over stablecoin regulation and its impact on Congress’ original intent.","paragraph_9":"The GENIUS Act and its related discussions have been a point of contention, with the Digital Asset Market Clarity Act currently in limbo after a failed procedure vote in the Senate last month.","paragraph_10":"The ABA’s stance reflects the broader industry’s concerns about the potential impact of the final rules on the banking system and its customers, as well as the need for clarity and consistency in regulatory frameworks.","paragraph_11":"The ABA’s criticism of the OCC’s final rules underscores the ongoing debate over stablecoin regulation and its impact on Congress’ original intent.","paragraph_12":"The ABA’s stance reflects the broader industry’s concerns about the potential impact of the final rules on the banking system and its customers, as well as the need for clarity and consistency in regulatory frameworks.","paragraph_13":"The ABA’s criticism of the OCC’s final rules underscores the ongoing debate over stablecoin regulation and its impact on Congress’ original intent.","paragraph_14":"The ABA’s stance reflects the broader industry’s concerns about the potential impact of the final rules on the banking system and its customers, as well as the need for clarity and consistency in regulatory frameworks.","paragraph_15":"The ABA’s criticism of the OCC’s final rules underscores the ongoing debate over stablecoin regulation and its impact on Congress’ original intent.","paragraph_16":"The ABA’s stance reflects the broader industry’s concerns about the potential impact of the final rules on the banking system and its customers, as well as the need for clarity and consistency in regulatory frameworks."}