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 seek input on 144 questions.
The rule aims to align with a similar proposal by the Office of the Comptroller of the Currency and will establish capital, liquidity, and custody standards for firms issuing stablecoins. The proposal also clarifies that stablecoins will not be eligible for deposit insurance and sets out guidelines for rewards programs managed by third-party stablecoin relationships.
The agency has suggested that issuers will need to maintain capital to manage business risk, as well as an operational backstop, and has 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 also working on the Digital Asset Market Clarity Act, which may potentially overhaul some of the details of the GENIUS Act.