The U.S. Federal Deposit Insurance Corporation (FDIC) has proposed new rules for stablecoin issuers under the GENIUS Act, seeking public input over a 60-day comment period. The proposal follows the enactment of the Guiding and Establishing National Innovation for U.S. Stablecoins Act, which established a federal framework requiring payment stablecoins to be fully backed by U.S. dollars or equally liquid assets. The law also mandates annual audits for issuers with a market capitalization above $50 billion and includes provisions for foreign issuance and regulatory oversight.
The FDIC's 191-page proposed rule targets permitted payment stablecoin issuers, which include subsidiaries of insured depository institutions or those authorized by federal or state regulators. These issuers would face capital, liquidity, and custody requirements. FDIC Chair Travis Hill noted the rapid growth in the stablecoin sector as traditional finance firms and crypto companies explore banking partnerships, necessitating formal rules.
The proposal clarifies deposit insurance coverage for reserve assets, reaffirming that payment stablecoins are not covered by federal deposit insurance. It also addresses yield-bearing arrangements, prohibiting issuers from representing that their tokens pay interest or yield simply for holding or using the stablecoin. Crypto insiders argue that properly designed rewards programs should fall outside this prohibition.
The FDIC's proposal is part of broader regulatory efforts under the GENIUS Act, joining previous rules from the Office of the Comptroller of the Currency and the Treasury Department. Lawmakers are also revisiting aspects of the GENIUS Act through the Senate's Digital Asset Market Clarity Act, though the bill has not yet advanced to a hearing.