The Federal Deposit Insurance Corporation has proposed a 191-page rule to regulate stablecoin issuers under the GENIUS Act framework. The move marks a significant step toward formalizing oversight as stablecoins integrate deeper into financial systems.
The proposal, approved Tuesday, sets requirements for reserve assets, risk management, and operational standards for permitted issuers. These include entities operating as subsidiaries of insured banks or those authorized by federal or state regulators. The rule also seeks public comment as regulators refine implementation of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act.
Will Stablecoin Rules Accelerate Institutional Adoption?
Under the GENIUS framework, stablecoins must be fully backed by U.S. dollars or similarly liquid assets, with annual audits required for issuers exceeding $50 billion in market capitalization. The FDIC proposal also clarifies that reserves held to back stablecoins may qualify for deposit insurance coverage in specific cases, though the tokens themselves are not insured.
“Over the past two years, we’ve seen tremendous progress in this area,” said FDIC Chair Travis Hill.
He cited increased activity from both banks and crypto firms, alongside rapid technological development and a shift in federal policy toward structured regulation.
The FDIC joins other agencies in building a coordinated rule set. The Office of the Comptroller of the Currency has already released guidance, while the Treasury Department recently proposed rules addressing state-level oversight. This multi-agency approach reflects growing urgency as stablecoin use cases expand across payments and tokenized deposits.
Still, the framework draws a clear distinction between stablecoins and traditional bank deposits. Regulators emphasized that payment stablecoins are not backed by the full faith and credit of the United States and do not carry federal deposit insurance protections.
The next catalyst will be industry feedback during the public comment period and whether final rules align across agencies to support broader adoption of regulated stablecoin issuance.
