The US Federal Deposit Insurance Corporation has formally proposed its approach to regulating stablecoin issuers, as required by the Guiding and Establishing National Innovation for US Stablecoins Act. The proposed rule will be open for public comment for 60 days, during which time the agency will gather feedback on its 144 questions. The FDIC's role is to regulate US depository institutions that issue stablecoins from their subsidiaries, and the proposal outlines capital, liquidity, and custody standards for these firms.
However, the details of the rule are not yet finalized and will depend on the agency's review of public comments. As expected, stablecoins will not be eligible for deposit insurance, and issuers will not be allowed to offer interest or yield on their tokens simply for holding or using them. The proposal also suggests that issuers will need to maintain capital to manage the risk of their business, as well as an operational backstop.
The agency has addressed the applicability of pass-through insurance to deposits held as reserves backing payment stablecoins, proposing that tokenized deposits that satisfy the statutory definition of 'deposit' would be treated no differently than other deposits. While regulators work to implement the GENIUS Act, lawmakers are also debating the Digital Asset Market Clarity Act, which could potentially overhaul some of the details of the GENIUS Act.
The regulatory process is expected to continue in the coming months, with the OCC, FDIC, and other agencies involved in crafting regulations.