US OCC Proposes Stablecoin Redemption Rules, Interest Payments May Face Restrictions

The U.S. Office of the Comptroller of the Currency (OCC) has put forth proposed rules for stablecoin regulation, introducing significant changes to redemption timelines and limitations on interest payouts.

Under the proposed regulations, payment stablecoins would typically be required to complete redemptions within two business days. However, this period could be extended to seven calendar days if daily redemptions exceed 10% of the stablecoin's total circulating supply.

Furthermore, the proposed rules explicitly prohibit paying, or appearing to pay, interest or yield to stablecoin holders. This measure, which includes restrictions on rewards, could potentially impact entities like Coinbase.

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