The FDIC is working to turn the GENIUS Act – the first proposed law for stablecoins – into clear rules for banks and their technology partners that want to offer or use these digital currencies.
As a crypto investor, I’m paying attention to the FDIC’s new proposal. Basically, they’re setting up rules for companies issuing payment stablecoins – the kind that could become widely used – and for banks that hold those stablecoins for customers. It’s a framework to make sure everything’s stable and safe, and it impacts both the companies creating these stablecoins and the banks involved in keeping them secure.
FDIC Issues GENIUS Act Rules
This proposal covers key requirements of the GENIUS Act, such as how reserves are managed, how redemptions work, capital needs, and overall risk management for the organization.
It also explains how deposit insurance will work for funds used as reserves for payment stablecoins. The FDIC will specify if insurance coverage extends to these funds.
As an analyst, I’ve been following the new rule closely, and a key takeaway is that tokenized deposits, if they legally qualify as ‘deposits,’ will be insured just like traditional deposits under the Federal Deposit Insurance Act. This is significant because it eliminates ambiguity about how these new, digitally-native deposit types will be handled, ensuring they receive the same protection.
The FDIC’s new rules apply specifically to certain banks and savings associations it oversees – those that are approved to issue stablecoins through their subsidiaries. These are known as FDIC-supervised IDIs.
Last December, the agency announced plans to create rules for companies wanting to issue payment stablecoins, as required by the GENIUS Act. These rules will outline how companies can apply for approval.
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The FDIC isn’t currently setting a specific minimum amount of capital that banks must hold, or a clear rule for determining those requirements. Instead, they’re asking for public input on whether to develop such a framework in future rules.
The new rule would also require companies issuing approved payment stablecoins to confirm they have strong programs in place to prevent money laundering and the funding of terrorism. These programs must be carefully designed to stop their stablecoins from being used for illegal activities.
The 197-page plan responds to technical and oversight questions raised by stablecoin companies. It doesn’t fully resolve some of the trickier details, such as exactly how much capital they should be required to hold, and will seek public feedback on those issues.
With these proposed rules, the Federal Deposit Insurance Corporation is taking steps to fulfill the requirements of the GENIUS Act and create a national system for regulating payment stablecoins.
This law directs the FDIC, working with other key federal regulators and the Treasury Department, to create rules for companies that issue or significantly back payment stablecoins. These rules will set safety and soundness standards for these companies.
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2026-04-08 08:13