- FDIC proposes new rules to regulate stablecoin issuers under the GENIUS Act
- Insurance applies to reserve deposits, not directly to stablecoin holders
- Standards include reserve, redemption, capital, custody, and risk management
- Public feedback open with 144 questions over a 60-day period
- OCC also involved in broader implementation of stablecoin regulations
FDIC Proposes Stablecoin Regulation Framework: The US Federal Deposit Insurance Corporation (FDIC) has introduced a proposal to regulate FDIC-supervised stablecoin issuers in line with the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which was signed into law nine months ago.
According to a statement released Tuesday, the FDIC’s board of directors voted to advance rules that establish requirements for reserve management, redemption processes, capital levels, risk management, and custody practices for stablecoin issuers and insured depository institutions under its supervision.
The FDIC currently insures deposits across more than 4,000 financial institutions and supervises over 2,700 banks and savings associations to maintain stability in the US financial system.
Insurance Coverage Excludes Stablecoin Holders
The FDIC clarified that while reserve deposits backing payment stablecoins would be insured under the proposed rules, this protection would not extend to stablecoin holders themselves.
The agency stated that treating stablecoin holders as insured depositors would be inconsistent with the GENIUS Act, which prohibits payment stablecoins from being subject to federal deposit insurance. However, the FDIC noted that the proposed framework is intended to create a more secure environment by ensuring that stablecoin issuers operate under enhanced regulatory and supervisory standards.
Public Feedback and Broader Regulatory Efforts
The FDIC has invited public input on the proposal, issuing 144 questions related to the regulation of stablecoin issuers. Feedback will be accepted over a 60-day period.
This marks the agency’s second proposal tied to the GENIUS Act, following a December 19 plan that introduced an application process for insured depository institutions seeking approval to issue payment stablecoins through subsidiaries. In parallel, the Office of the Comptroller of the Currency (OCC) is also working to implement the GENIUS Act. The OCC’s role will extend to a broader range of stablecoin activities, including oversight of national bank subsidiaries and certain nonbank issuers.
