The FDIC moved the U.S. stablecoin rulemaking process forward on Tuesday, publishing a detailed proposal that lays out how it would oversee stablecoin issuers under last year’s GENIUS Act. The draft mirrors much of the Office of the Comptroller of the Currency’s (OCC) February framework and opens a 60-day public comment window on a 144-question package — the next formal step toward federal rules for payment stablecoins.
Why this matters
- The FDIC is the federal regulator for depository institutions. Under GENIUS, its remit covers banks (and bank subsidiaries) that issue stablecoins, meaning the agency’s standards could shape the structure of bank-backed tokens across the U.S. financial system.
- This is the FDIC’s second GENIUS-era proposal (the agency previously outlined an issuer application process in December) and is a substantive move toward a finalized rule, though the agency says the final text won’t be ready until it reviews comments and drafts the rule — likely months away.
Key points in the proposal
- Capital, liquidity and custody standards: The FDIC set out minimum expectations for capital and liquidity to cover business and reserve risks, though exact numeric thresholds will be determined in the final rule.
- Operational backstop: In addition to capital requirements, the proposal would require an “operational backstop” — a separate buffer tied to the previous year’s operating expenses to support continuity in stressed conditions.
- No deposit insurance for stablecoins: Consistent with the statute, payment stablecoins would not carry FDIC deposit insurance like traditional bank accounts.
- Pass-through insurance treatment: The FDIC said tokenized deposits that meet the statutory definition of “deposit” should be treated the same as other deposits for pass-through insurance purposes — clarifying how reserve deposits might be insured at the account-holder level.
- Restrictions on yield marketing: The FDIC warned issuers they cannot represent that a payment stablecoin pays interest or yield “simply for holding or using a payment stablecoin,” including via third-party arrangements. That echoes earlier OCC language that raised questions about rewards programs managed by exchanges and other partners. Industry participants have expressed confidence that carefully designed rewards programs can be structured to comply.
Regulatory and political context
- The FDIC’s proposal intentionally aligns with the OCC’s earlier draft to promote a consistent federal approach. Other agencies involved in GENIUS implementation include the Treasury and market regulators.
- Parallel legislative work — notably the Senate’s Digital Asset Market Clarity Act — could alter elements of the regulatory package, especially around yield-bearing stablecoin arrangements. Lawmakers have said they are close to resolving those issues, but the Senate bill has not yet reached a hearing.
- The current composition of the relevant federal agencies — dominated by Republican appointees after the White House left many vacancies unfilled with Democrats — means the agencies face few internal obstacles to pursuing their preferred regulatory design. Still, the GENIUS Act itself enjoyed bipartisan Congressional support when it became law.
What’s next
Stakeholders have 60 days to submit comments in response to 144 questions from the FDIC. The agency will review feedback and refine the proposal before publishing a final rule, a process that could take several more months. For issuers, exchanges and banks planning stablecoin products, the proposal provides the clearest signal yet of capital and operational expectations under federal supervision — but final details are still to come.
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