FDIC approves proposal to implement GENIUS Act requirements for stablecoin issuers

The FDIC Board has approved a proposal to implement GENIUS Act requirements for payment stablecoin issuers it supervises, moving the banking regulator into formal rulemaking on one of Washington’s newest financial policy areas.

In a press release and accompanying notice on April 7, the agency said the proposal would set prudential standards for FDIC-supervised permitted payment stablecoin issuers and insured depository institutions that engage in stablecoin-related activities. The FDIC said the rule would cover reserve assets, redemption, capital, risk management, custodial services and safekeeping requirements.

The agency also said it would clarify how deposit insurance applies to the reserves backing payment stablecoins. According to the FDIC, deposits held as reserves would not be insured on a pass-through basis to stablecoin holders. The proposal would also treat tokenized deposits that meet the statutory definition of a deposit the same as other deposits under the Federal Deposit Insurance Act.

The FDIC said comments on the proposal will be accepted for 60 days after publication in the Federal Register.

The move follows earlier FDIC statements signaling that the agency was preparing to define prudential requirements for stablecoin issuers as Congress’s GENIUS Act begins to take effect. It also comes as bank regulators continue to sort out how digital assets fit inside existing deposit and insurance rules.