The Office of the Comptroller of the Currency (OCC) has released a 376-page draft framework for implementing the GENIUS Act for dollar-backed stablecoins, after Coin Bureau flagged the proposal on X on Feb. 27.
🚨 JUST IN: OCC MOVES TO RESTRICT STABLECOIN REWARDS
The Office of the Comptroller of the Currency has proposed new rules that would restrict white-label stablecoin issuance and limit issuers to a single brand of stablecoin, adversely affecting firms like Paxos and Paypal USD pic.twitter.com/gI7y8P4UMg
— Coin Bureau (@coinbureau) February 27, 2026
In the draft, the OCC considers limiting each permitted issuer to a single branded stablecoin, a compliance pivot that would restrict white-label issuance and could force partner models to restructure. Coin Bureau said the approach would be adverse for firms such as Paxos and PayPal USD. The proposal also sets a broad ban on yield and rewards, including direct interest, cashback incentives and loyalty-style distributions, and targets indirect setups where affiliates pass rewards through. On redemptions, issuers would be expected to complete payouts within two business days, with a longer window of up to seven business days if daily redemptions exceed 10% of total supply.
The OCC opened a 60-day comment period, making stakeholder feedback the immediate delivery milestone. Next, market participants will watch whether the final rulebook keeps stablecoins positioned strictly as payment instruments rather than interest-bearing alternatives, and how quickly issuers adjust compliance, disclosures and liquidity governance.
Source: Coin Bureau (X).
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