FDIC Proposes Stablecoin Issuer Rules Under GENIUS Act Framework

The U.S. Federal Deposit Insurance Corporation has proposed new rules to regulate stablecoin issuers supervised by the agency under the Guiding and Establishing National Innovation for U.S. Stablecoins, or GENIUS Act. In a statement released Tuesday, the FDIC said its board approved a proposal establishing standards covering reserves, redemption practices, capital requirements, risk management, and custody obligations for stablecoin issuers and insured depository institutions under its supervision.

The FDIC currently insures deposits at more than 4,000 financial institutions and supervises over 2,700 banks and savings associations, positioning the agency to play a central role in maintaining financial stability as stablecoin activity expands. The GENIUS Act granted the FDIC authority to oversee stablecoin-related operations within supervised banks when it was signed into law in July, with implementation scheduled for Jan. 18, 2027, unless introduced earlier.

Insurance Coverage Will Not Extend to Stablecoin Holders

Under the proposal, reserve deposits backing payment stablecoins would qualify for FDIC insurance coverage. However, the agency clarified that the protection would not apply directly to stablecoin holders. Officials stated that treating token holders as insured depositors would conflict with the GENIUS Act’s prohibition on payment stablecoins being covered by federal deposit insurance.

Despite this limitation, the FDIC said the rules are intended to create a more secure environment by ensuring stablecoin issuers meet elevated regulatory and supervisory standards, offering greater confidence in the safety of reserve backing.

Public Feedback Invited as Implementation Efforts Continue

The FDIC has invited public feedback on 144 specific questions related to the regulation of stablecoin issuers, with comments open for a 60-day period. This marks the agency’s second rulemaking proposal under the GENIUS Act, following a Dec. 19 plan outlining application procedures for insured depository institutions seeking approval to issue payment stablecoins through subsidiaries.

Meanwhile, the Office of the Comptroller of the Currency is also working on implementing the law, covering a broader range of stablecoin activity, including national bank subsidiaries and certain nonbank issuers.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.