The US Federal Deposit Insurance Corporation has formally introduced its approach to regulating stablecoin issuers, as required by the Guiding and Establishing National Innovation for US Stablecoins Act. The proposed rule, 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's role is to regulate US depository institutions that issue stablecoins from their subsidiaries, and the proposal sets out capital, liquidity, and custody standards for these firms.
However, the details 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 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 could potentially overhaul some of the details of the GENIUS Act.