The US Federal Deposit Insurance Corporation has put forward a new regulatory proposal aimed at governing stablecoin issuers that fall under its supervision. The FDIC’s board of directors voted to issue the proposal, which would establish standards covering reserves, redemption, capital requirements, risk management, and custody. The move comes in response to the Guiding and Establishing National Innovation for US Stablecoins Act, signed into law nine months ago.
The GENIUS Act, enacted in July, granted the FDIC authority to oversee stablecoin activity within the banks and institutions it supervises. The law is scheduled to take full effect on January 18, 2027, unless implemented earlier. The FDIC currently insures deposits at more than 4,000 financial institutions and supervises over 2,700 banks and savings associations as part of its mandate to maintain stability in the US financial system.
Under the proposed rules, reserve deposits backing a payment stablecoin would be eligible for FDIC insurance coverage. However, that protection would not extend directly to stablecoin holders themselves. The agency explained that treating stablecoin holders as insured depositors would be inconsistent with the GENIUS Act’s explicit prohibition on payment stablecoins being subject to federal deposit insurance.
Despite this limitation, the FDIC maintained that its proposed framework would still create a more secure environment for stablecoin holders. The agency said the rules would provide increased assurance that payment stablecoins are subject to elevated regulatory and supervisory standards. The proposal is intended to bring greater oversight and accountability to the stablecoin market without extending traditional deposit insurance protections to token holders.
The FDIC has opened a public comment period, inviting feedback on 144 specific questions related to how it should regulate stablecoin issuers. Members of the public have 60 days to submit their responses. This marks the agency’s second proposal connected to the GENIUS Act, following an earlier plan issued on December 19 that outlined an application procedure for insured depository institutions seeking approval to issue payment stablecoins through subsidiaries.
The Office of the Comptroller of the Currency is also working on its own implementation of the GENIUS Act. The OCC’s scope is expected to be broader than the FDIC’s, as it oversees national bank subsidiaries as well as certain nonbank stablecoin issuers. Together, the two agencies are working to build a comprehensive regulatory framework for the growing stablecoin sector in the United States.
Originally reported by CoinTelegraph.
