The US Federal Deposit Insurance Corporation has formally introduced its approach to regulating stablecoin issuers, as required by the Guiding and Establishing National Innovation for US Stablecoins Act. The proposed rule, which aligns with the Office of the Comptroller of the Currency's February proposal, will be open for public comment for 60 days. The FDIC has posed 144 questions to gather input on the proposal, which includes capital, liquidity, and custody standards for institutions issuing stablecoins. The rule will not be finalized until the agency reviews the comments and writes the final language.
As expected, stablecoins will not be eligible for deposit insurance. The proposal also addresses the capital requirements for issuers and the applicability of pass-through insurance to deposits held as reserves backing payment stablecoins. While regulators work to implement the GENIUS Act, lawmakers are also discussing the Digital Asset Market Clarity Act, which may overhaul some of the details of the GENIUS Act.