Bloomberg writes, "Federal Bank Regulator Moves to Restrict US Stablecoin Rewards." The article explains, "The Office of the Comptroller of the Currency proposed rules that would restrict companies from launching branded stablecoins through white-​label platforms and offering rewards tied to them, the agency'​s first major attempt to implement the federal cryptocurrency law signed by President Donald Trump in July. The proposed rulemaking, introduced this week, takes aim at stablecoin-​as-​a-​service platforms operated by firms like Paxos, Stripe Inc.’​s Bridge and Anchorage Digital Bank that allow technology companies to issue their own branded stablecoins -- arrangements the banking industry has warned could siphon deposits from traditional lenders. The OCC is attempting to address the banking industry'​s concerns." The piece quotes Jonathan Gould, head of the OCC, from a Senate Banking Committee hearing, "If you look in our proposal, which we released yesterday, we have hard wired a number of things into our proposal that we believe would tend to reduce the probability of deposit flight. If deposit flight were to occur, I think we would notice it, meaning it wouldn'​t occur under cover of darkness, where no one would see it and fail to react to it." Bloomberg adds, "The OCC is considering and requesting comment on plans to restrict each permitted payment stablecoin issuer to offer only one brand of stablecoin. If that restriction is put in place, the regulator would streamline the process for approving applications to become permitted payment stablecoin issuers. Paxos' arrangement issuing PayPal Holdings Inc.'​s PYUSD coin, which offers 4% rewards on customer balances, for example, would likely not be able to continue if the current language stands."

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