The FDIC has proposed new rules to implement the GENIUS Act for stablecoin issuers under its supervision. The proposal sets standards for reserves, redemptions, and capital but clarifies that FDIC deposit insurance will not directly protect stablecoin holders. The public comment period is now open for 60 days.
The US Federal Deposit Insurance Corporation (FDIC) has moved to regulate stablecoin issuers it supervises. Its board approved a proposal to set reserve, redemption, capital, risk management, and custody standards in accordance with the GENIUS Act, which was signed nine months ago.
The FDIC supervises over 2,700 banks and savings associations to maintain financial stability. The GENIUS Act granted it authority over stablecoin activity at these institutions, with the law taking full effect by January 2027.
While reserve deposits backing a stablecoin would be insured, that protection will not extend to token holders. The FDIC stated treating holders as insured depositors “seems inconsistent” with the Act’s prohibition.
However, the agency argued its rules would create a more secure environment for users. It said they provide “increased assurance that their payment stablecoins are subject to elevated regulatory and supervisory standards.”
The FDIC is now seeking public feedback on 144 questions regarding the regulations. Comments will be accepted for the next 60 days via a published notice.
This marks the FDIC’s second proposal for implementing the GENIUS Act. The first, issued December 19, aimed to establish an application procedure for insured depository institutions.
The Office of the Comptroller of the Currency (OCC) is also working to implement the law. The OCC would oversee a broader scope, including national bank subsidiaries and certain nonbank issuers.
