Companies like the exchange Coinbase and Paypal are taking advantage of the loopholes present in the GENIUS law focused on stablecoins to offer rewards to depositors, despite it expressly prohibiting issuers from distributing any type of interest or yield to holders.

The issuer of PYUSD was Paxos, allowing Paypal to participate in delivering rewards to its customers through earning programs. Coinbase is also currently offering a program that allows USDC holders to earn 4.1% in rewards simply by holding these tokens in their Coinbase accounts.