Bank Regulator Moves to Restrict US Stablecoin Rewards

The Office of the Comptroller of the Currency proposed rules that would restrict companies from launching branded stablecoins through white-label platforms and offering rewards tied to them, the agency’s first major attempt to implement the federal cryptocurrency law signed by President Donald Trump in July.

The proposed rulemaking would affect stablecoin-as-a-service platforms operated by firms like Paxos, Stripe Inc.’s Bridge and Anchorage Digital Bank that allow technology companies to issue their own branded stablecoins — arrangements the banking industry has warned could siphon deposits from traditional lenders. The OCC is attempting to address the banking industry’s concerns. The proposal includes rebuttable presumptions that could lead to some arrangements being subject to the yield prohibition.