OCC lets crypto exchanges keep paying stablecoin rewards

The Office of the Comptroller of the Currency will allow crypto exchanges such as Coinbase and Robinhood to keep paying interest-like rewards on stablecoins on a case-by-case basis. Stablecoin issuers like Circle remain barred from paying interest. Banking groups warn the rule risks deposit flight.

• Stablecoin issuers including Circle still cannot pay interest to holders
• Exchanges may pass on stablecoin earnings case by case
• Coinbase offers up to 3.5% on USDC vs 0.38% average US savings rate
• ABA says the rule threatens funds banks use for lending