The U.S. Federal Deposit Insurance Corporation (FDIC) is developing a regulatory framework for stablecoin issuers under its supervision, in accordance with the GENIUS Act. The board of the FDIC has voted to publish a proposal outlining minimum standards for reserves, redemption mechanisms, capital requirements, risk management, and custody for stablecoin issuers and insured depository institutions (IDIs) within its jurisdiction. The GENIUS Act, enacted about nine months ago, grants the FDIC authority to oversee stablecoin activities within the banks it supervises, with the overall goal of strengthening oversight of this rapidly growing sector within the digital asset ecosystem. The agency indicated that the proposed rules will apply to reserve-backed payment stablecoins and are expected to take effect on January 18, 2027, unless earlier action is taken.

The FDIC confirmed that while the proposed rule will secure deposit insurance for reserve-backed payment stablecoins, it will not cover the holders of these coins themselves. The agency views treating coin holders as insured depositors as inconsistent with the provisions of the GENIUS Act, which limits deposit insurance coverage to traditional deposit accounts and not tokenized payments. However, the agency argued that raising regulatory and supervisory standards related to stablecoin reserves and governance will create a safer environment for users relying on these coins to meet their payment and liquidity needs smoothly.