US Stablecoin Crackdown Sparks Backlash from Consensys Over Yield Rules
A dispute has emerged over US plans to restrict stablecoin yields, with blockchain firm Consensys pushing back against proposed rules. The Office of the Comptroller of the Currency (OCC) wants to ban issuers from paying interest on stablecoins to avoid competition with traditional bank deposits. Consensys argues the measures go too far and misinterpret the original law. The GENIUS Act, passed by Congress, stops stablecoin issuers from offering interest or yield directly to holders. Its aim was to prevent these assets from rivaling bank deposits. However, the OCC has now extended this ban to cover 'related third parties', including independent distributors who work with issuers.
Consensys claims this overreach wrongly targets activities that fall outside the law’s scope. The firm highlights that platforms like MetaMask allow users to deposit stablecoins into DeFi protocols such as Aave or Morpho. These actions, it argues, are active investment choices—not passive yield payments from issuers.
The company also disputes the OCC’s proposal to block a single licensed issuer from supporting multiple co-branded stablecoins. Instead of an outright ban, Consensys suggests clearer disclosure rules and separating different stablecoin pools. It insists that distributors using their own commercial fees to incentivise users should not be treated as issuers paying yield.
Consensys has called on the OCC to revise its approach, ensuring it aligns with Congress’s original intent. The firm stresses that the current interpretation risks stifling innovation in decentralised finance without justification. The OCC’s proposed rules would widen restrictions on stablecoin yields, affecting both issuers and third-party distributors. Consensys maintains that active DeFi participation differs from issuer-paid interest and should remain outside regulatory limits. The outcome of this debate could shape how stablecoins interact with traditional banking and decentralised platforms.
