US regulators allow crypto exchanges to pay interest-like rewards on stablecoins

Federal regulators in the US have confirmed that cryptocurrency exchanges may continue to pay interest-like rewards to customers, according to Fast Company. The new rules, part of the GENIUS Act and published by the Office of the Comptroller of the Currency, clarify that while stablecoin issuers such as Circle cannot pay interest directly to holders, exchanges like Coinbase and Robinhood can pass on earnings from stablecoins to their customers.

This decision follows warnings from banks that these programmes could drain large sums from traditional deposits. For regulated financial institutions and payment firms, the update signals a shift in how customer incentives are managed in the crypto sector and may influence future deposit trends. Executives should watch for additional regulatory guidance as the market adapts.