The US Federal Deposit Insurance Corporation has formally introduced its proposed approach to regulating stablecoin issuers, as required by the Guiding and Establishing National Innovation for US Stablecoins Act. The proposal, 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 outlined capital, liquidity, and custody standards for institutions issuing stablecoins, although the specifics will not be finalized until the agency has reviewed input and written the final language. As expected, stablecoins will not be eligible for deposit insurance, and issuers will not be able 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 business risks, 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 be treated the same as other deposits. While regulators work to implement the GENIUS Act, lawmakers are close to resolving a debate over yield-bearing stablecoin holdings, and the bill is expected to advance to a hearing soon.