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 proposal, which aligns closely with the Office of the Comptroller of the Currency's proposal in February, will be open for a 60-day public comment period.
The FDIC's role is to regulate US depository institutions that issue stablecoins from their subsidiaries, and the proposal poses capital, liquidity, and custody standards for these firms. Stablecoins will not be eligible for deposit insurance, and issuers will not be able to represent that their tokens pay interest or yield simply for holding or using a payment stablecoin.
The proposal also suggests that issuers will need to maintain capital to manage business risk, plus an operational backstop. While regulators work to implement the GENIUS Act, some details are potentially being overhauled by the Senate's Digital Asset Market Clarity Act. The proposal is a significant step towards establishing federal rules for stablecoin issuers, and the public comment period will provide valuable feedback for the final rule.