OCC Removes Proposed Affiliate Rewards Presumption but Keeps Stablecoin Yield Ban

WHY IT MATTERS

The OCC is like the referee for big national banks in the U.S. — it sets the rules for what banks can and cannot do. In this case, the OCC decided to drop one proposed rule about reward programs tied to bank affiliates, but it kept a ban that prevents banks from offering customers a return (like interest) on stablecoins. Stablecoins are cryptocurrencies designed to hold a steady value, usually pegged to the U.S. dollar. Some crypto platforms offer 'yield' on stablecoins, which works similarly to earning interest on a savings account. By keeping this ban, the OCC is saying that traditional banks under its watch cannot offer this kind of product, which limits how banks can participate in the crypto economy and affects what services bank customers can access.