The Federal Deposit Insurance Corporation (FDIC) has formally proposed its approach to regulating stablecoin issuers, as required by the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. The proposal, which aligns with the Office of the Comptroller of the Currency's (OCC) February proposal, will be open for public comment for 60 days.
The FDIC has posed 144 questions to gather input on the proposed rules, including capital, liquidity, and custody standards for firms issuing stablecoins. The proposal also clarifies that stablecoins will not be eligible for deposit insurance, and issuers will not be allowed to offer interest or yields on their tokens simply for holding or using them. The FDIC's proposal suggests that issuers will need to maintain capital to manage business risks, as well as an operational backstop.
The agency has also addressed the applicability of pass-through insurance to deposits held as reserves backing payment stablecoins. While regulators work to implement the GENIUS Act, lawmakers are still debating the Digital Asset Market Clarity Act, which could potentially overhaul some of the GENIUS Act's details.