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 with the Office of the Comptroller of the Currency's February proposal, will be open for a 60-day public comment period. The FDIC has posed 144 questions to gather input on the proposed rule, which includes capital, liquidity, and custody standards for institutions issuing stablecoins.
The proposal also clarifies that 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 FDIC's proposal is the second GENIUS Act proposal from the banking agency, following its December pitch on the issuer application process. 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 GENIUS Act's details.