FDIC Reveals Proposed Rules for Stablecoin Issuers Under GENIUS Act

The Federal Deposit Insurance Corporation (FDIC) revealed projected rules Monday that would instrumentality stablecoin regulations nether the GENIUS Act—which President Donald Trump signed into instrumentality past summer—establishing requirements for FDIC-supervised outgo stablecoin issuers and banks engaging successful stablecoin activities.

The connection creates a prudential model including standards for reserve assets, redemption processes, superior requirements, and hazard absorption for supervised stablecoin issuers.

A cardinal proviso explicitly excludes stablecoins from deposit security protections. Deposits held arsenic reserves backing outgo stablecoins would not beryllium insured to token holders connected a pass-through basis, confirming that stablecoins won't person the aforesaid protections arsenic accepted slope accounts.

The connection besides mandates that issuers redeem tokens wrong 2 concern days, and prohibits them from claiming their tokens make involvement oregon yield, including done third-party arrangements. The regularisation clarifies that tokenized deposits gathering the statutory explanation of "deposit" would person identical attraction nether the Federal Deposit Insurance Act arsenic immoderate different deposit type. 

The FDIC's enactment implements the GENIUS Act, which allows outgo stablecoin issuers with little than $10 cardinal successful outstanding tokens to take state-level regularisation if their authorities meets national standards. The Treasury Department is simultaneously processing principles for evaluating authorities regulatory regimes, with its remark play moving done June 2, 2026.

The FDIC seeks feedback connected 144 circumstantial questions successful its proposal, with the 60-day remark play opening upon Federal Register publication. The Office of the Comptroller of the Currency (OCC) issued its ain framework successful February.