U.S. regulators permit crypto exchanges to continue offering interest‑like rewards
The Office of the Comptroller of the Currency issued new rules under the GENIUS Act that let cryptocurrency exchanges such as Coinbase and Robinhood pass earnings from stablecoin holdings to customers as interest‑like rewards. Stablecoin issuers like Circle remain barred from paying interest directly. The OCC will evaluate each exchange’s program on a case‑by‑case basis. Banks warn the higher yields could trigger deposit flight from traditional banks.
Why it matters
The decision allows crypto platforms to maintain attractive yield offerings, which may draw funds away from banks and affect their lending capacity, according to banking industry statements. Investors in Coinbase (COIN) and Robinhood (HOOD) can expect the continuation of these reward programs.
Key facts
- 1The OCC issued rules that let exchanges trade and hold stablecoins and pass earnings to customers as interest‑like rewards on a case‑by‑case basis. finance.yahoo.com
- 2Stablecoin issuers such as Circle are prohibited from paying interest to coin holders. finance.yahoo.com
- 3Coinbase offers yields of up to 3.5% on USDC balances. finance.yahoo.com
- 4The average traditional savings account yields 0.38%, according to FDIC figures. finance.yahoo.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.