"The problem is that the OCC's proposed rule extends the prohibition beyond issuers to related third parties, a category that, as drafted, sweeps in independent distribution partners that happen to co-brand or white label a stablecoin."
"Consensys maintains that partners operating independently, even when receiving commercial fees, are not acting as issuers, highlighting that Congress rejected broader language that would have applied the prohibition to non-issuers."
Proposed OCC rules could significantly impact stablecoin distribution by extending yield restrictions to third-party partners, according to Consensys. The framework under the GENIUS Act may misclassify DeFi activities and independent distribution arrangements. Bill Hughes from Consensys argues that the OCC's proposed rule improperly extends the prohibition on yield beyond issuers to include independent partners. This could lead to a consolidation of stablecoin markets rather than broad expansion, depending on regulatory outcomes.
Read at news.bitcoin.com
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