BREAKING: FDIC Proposes New Stablecoin Rules Under GENIUS Act

The US FDIC just took a big step for crypto regulation. On April 7, 2026, it proposed the first detailed rulebook for bank-issued stablecoins under the GENIUS Act.

Here is what the proposal says:
🔸 Stablecoins must be backed 1:1 with real reserves at all times
🔸 Redemptions must be processed within 2 business days
🔸 Issuers cannot pay interest or yield to holders
🔸 If redemptions cross 10% in 24 hours, the FDIC must be notified
🔸 New issuers need a minimum $5M capital for the first 3 years
🔸 Monthly reserve audits by registered accounting firms
🔸 Strict rules on cybersecurity, private keys, and smart contracts

Important clarifications most people are missing:
❌ This is a proposed rule, not a final law. A 60-day public comment period is open now.
❌ It applies only to bank-affiliated stablecoin issuers, not Tether or Circle directly.
❌ FDIC pass-through insurance for stablecoin holders has been REJECTED. Your stablecoins are NOT insured like a bank deposit.

Why it matters for crypto:
This is the foundation the US needs to bring banks, pension funds, and big institutions into the stablecoin market with full legal clarity. Final rules are expected by July 18, 2026, and the GENIUS Act takes full effect by January 2027.

Regulated stablecoins are coming. The grey area is closing fast. This is bullish for long-term adoption but the details will decide who wins and who gets pushed out.