ABA Challenges OCC Stablecoin Rule Over GENIUS Act Rewards Loophole
American Bankers Association criticized the OCC final GENIUS Act stablecoin rule, saying it weakens congressional safeguards by dropping a proposed presumption against third party arrangements. The rule bars issuers from direct interest payments but lets regulators review deals individually. ABA CEO Rob Nichols warned rewards could pull deposits from banks and reduce lending. OCC proposed weekly reserve reporting starting Jan 25, 2027 and quarterly reports March 31.
