The US Federal Deposit Insurance Corporation has formally unveiled 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 earlier suggestion, will be open to public comment for 60 days.
The FDIC has posed 144 questions to gather feedback on the proposed rules, including capital, liquidity, and custody standards for firms issuing stablecoins. The proposal clarifies that stablecoins will not be eligible for deposit insurance, and issuers will not be allowed to offer interest or yields on their tokens. The FDIC has also suggested that issuers will need to maintain capital to manage business risks, as well as an operational backstop.
While regulators work to implement the GENIUS Act, lawmakers are simultaneously debating the Digital Asset Market Clarity Act, which could potentially overhaul some of the details. The regulatory agencies, dominated by Republican appointees, face few obstacles in crafting the rules, despite the GENIUS Act having received bipartisan support in Congress.