Stablecoins just got the regulatory clarity industry wanted

A federal banking regulator on Wednesday released a final version of new rules on dollar-pegged stablecoins.

The rules give companies issuing stablecoins more flexibility while leaving a contentious question of stablecoin yield unresolved.

The Office of the Comptroller of the Currency (OCC) finalized rules for implementing the landmark stablecoin legislation President Trump signed into law last year, known as the GENIUS Act. Those rules ease several proposed restrictions on how stablecoin issuers must manage their reserves, including a previous maturity limit that would have prevented issuers from holding longer-term Treasurys.

The OCC, meanwhile, left one of the biggest industry disputes over stablecoins unanswered.

Crypto and banking industry lobbyists squared off earlier this year over whether third-party crypto operators could pay customers yield on their idle stablecoin balances.

Crypto firms have argued that they should have room to compete with banks, while banks have raised concerns that allowing the activity risks deposits being pulled out of the banking system without subjecting the new competition to the same regulatory requirements banks face.

While the GENIUS Act prevents stablecoin issuers from paying interest directly, the OCC eliminated a proposed provision that would have barred crypto exchanges and other third-party platforms from offering customers yield on their idle stablecoin balances.

Instead, the agency said it will evaluate those kinds of arrangements on an individual basis.

TD Cowen policy analyst Jaret Seiberg described the decision as a "negative for banks as it does not fully shut down the ability for platforms to pay yield on stablecoins."

"We see this as creating uncertainty," Seiberg wrote to clients on Wednesday. "It also suggests the Supreme Court ultimately will need to decide what yield payments are legal."

Circle Internet Group ( CRCL ), the country's largest stablecoin issuer, and major crypto exchange Coinbase Global ( COIN ) applauded the new rules. (Disclosure: Yahoo Finance has a partnership with Coinbase.)

"We welcome the OCC's final rules implementing the GENIUS Act — an important milestone in translating America's leadership on stablecoin legislation into clear, durable regulatory standards," Dante Disparte, Circle's chief strategy officer and head of global policy, said in a statement.

"There's a lot to like," Coinbase chief policy officer Faryar Shirzad said in a post on X, referring to the new rules.