Lead · Regulation
GENIUS Act prohibits regulated stablecoins from paying interest directly — so USDC not paying interest isn't Circle's choice, it's a legal requirement. OUSD sharing yields with Visa instead of users is also a way to work around this rule. Want stablecoin yield? Deposit into DeFi protocols — don't wait for the issuer to pay.
Sandra Wei
·
July 03, 2026
If you've ever asked 'why doesn't Circle just distribute USDC reserve interest to USDC holders' or 'why does OUSD say it'll share revenue with Visa and Mastercard but not directly to regular users' — the answer to both points to the same legal provision: GENIUS Act's 'Zero-Yield Requirement.' The 2025 GENIUS Act set a regulation that appears simple but has far-reaching impact: regulated...