The Federal Deposit Insurance Corporation (FDIC) has approved a proposed rule to implement key provisions of the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act), establishing a clear and stringent regulatory base for stablecoin issuers under its oversight. This 190-page rulebook represents a significant step in formalizing U.S. stablecoin regulation, moving from policy discussion to concrete rule-writing.
The proposed framework targets FDIC-supervised institutions, including banks and their subsidiaries, that plan to issue payment stablecoins. It sets strict standards across four fundamental areas: reserve assets, redemption procedures, capital requirements, and risk management. Issuers will be required to back their tokens with high-quality, liquid reserves. A critical mandate is that redemptions must be completed within two business days under normal operating conditions.
The rule clarifies several important operational boundaries. It explicitly states that stablecoin reserves do not constitute bank deposits, meaning they are not eligible for FDIC insurance claims. Furthermore, the purchase of a stablecoin does not involve any form of credit support from the issuer. The framework also draws a clear distinction between stablecoins and tokenized bank deposits, affirming that the latter will be treated identically to conventional deposits under existing law if they meet the legal definition.
This proposal marks the second major regulatory action by the FDIC under the GENIUS Act, following its December 2025 rule outlining the application process for banks to issue stablecoins via subsidiaries. The agency has opened a 60-day public comment period once the proposal is published in the Federal Register, with the final rule expected to be shaped by feedback from industry participants, banks, and crypto firms.
