On October 22, 2026, reports highlighted a new rule from the Office of the Comptroller of the Currency (OCC), finalized the previous day, that leaves uncertainty around stablecoin rewards. The rule offers no safe harbor for existing programs, directly affecting PayPal’s 4% reward offering for its PYUSD stablecoin. It bars issuers from paying yield solely for holding or using a stablecoin.
The rule raises a significant regulatory question for PayPal’s crypto strategy, as the yield has been a key feature in encouraging PYUSD adoption. The OCC said rewards tied to activities beyond simply holding the asset could comply, but gave no specific examples, leaving PayPal and other issuers without clear guidance.
The regulatory headwind comes as analysts point to broader market share pressures and await PayPal’s Q3 earnings report on October 27.