FDIC issues proposed GENIUS Act rules for payment stablecoins
FDIC proposes rules for bank stablecoins under GENIUS Act
The FDIC Board approved a proposed rule to implement the GENIUS Act for payment stablecoins. It sets a prudential framework for FDIC‑supervised banks and subsidiaries that issue or custody stablecoins.
The notice of proposed rulemaking defines how banks can issue and handle payment stablecoins under FDIC oversight. It targets FDIC‑supervised insured depository institutions and their subsidiaries that receive approval to issue stablecoins, and IDIs that provide custodial or safekeeping services tied to them FDIC proposal.
- Reserves and redemptions: the proposal addresses reserve asset composition and treatment, redemption mechanics, and enterprise‑level risk management expectations FDIC proposal.
- Deposit insurance: it clarifies how insurance applies to funds held as reserves backing payment stablecoins, including whether pass‑through insurance applies FDIC proposal.
- Tokenized deposits: digital deposits that meet the statutory “deposit” definition will be treated the same as any other deposit under the Federal Deposit Insurance Act FDIC proposal.
- Capital: the FDIC does not set specific minimums yet and is soliciting feedback on whether to create an objective capital framework in future rules FDIC proposal.
- Compliance: permitted payment stablecoin issuers must certify AML and sanctions programs designed to prevent money laundering and terrorist financing FDIC proposal.
The 197‑page package addresses technical and supervisory questions for issuers, while leaving complex calibration issues, including capital quantification, for public comment FDIC proposal.
The move advances the GENIUS Act mandate to build a federal regulatory framework for payment stablecoins with the Treasury and other primary regulators FDIC proposal.
