The Federal Deposit Insurance Corporation (FDIC) is moving to regulate stablecoin issuers through proposed rules aligned with the GENIUS Act. These new regulations will establish standards for reserves, redemption, capital, risk management, and custody for stablecoin issuers supervised by the FDIC.
While the proposed rules would insure corporate deposits backing stablecoins, this protection will not extend directly to stablecoin holders. The FDIC stated that extending deposit insurance to token holders would conflict with the GENIUS Act's provisions, which prohibit payment stablecoins from being subject to federal deposit insurance. However, the FDIC aims to provide a more secure environment by ensuring elevated regulatory and supervisory standards for stablecoin issuers.
The agency is seeking public feedback on these proposed regulations, with a 60-day comment period open. This initiative follows a previous plan from the FDIC to establish an application procedure for insured depository institutions seeking to issue payment stablecoins.