OCC Moves to Clamp Down on Stablecoin Interest Payments Nationwide

OCC allies with banking lobby to block interest payments on stablecoins. Regulators reject proposal for EIP-7702 to allow stablecoin yield-bearing assets. Current stablecoin regulation doesn't require any minimum equity or net capital charges, but this will change if the new proposal passes. Stablecoin issuers like USDC and BUSD could bear increased costs under proposed banking-backed rules.