The US Federal Deposit Insurance Corporation has officially unveiled its 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 subject to a 60-day public comment period. The FDIC's role is to oversee US depository institutions that issue stablecoins through their subsidiaries, and the proposal outlines capital, liquidity, and custody standards for these firms.
However, the details will not be finalized until the agency reviews the comments and drafts the final language. As expected, stablecoins will not be eligible for deposit insurance, and issuers will not be allowed to offer interest or yields for simply holding or using a payment stablecoin.
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 debating the Digital Asset Market Clarity Act, which may overhaul some of the details. The regulatory agencies, including the Treasury Department and markets regulators, have the flexibility to craft regulations without significant opposition from Democratic appointees.