The post FDIC proposes new stablecoin rules under GENIUS Act appeared on BitcoinEthereumNews.com.

The Federal Deposit Insurance Corporation has proposed new rules under the GENIUS Act to oversee stablecoins issued through the banking system. Summary FDIC has proposed new rules under the GENIUS Act to set reserve, risk management, and custody standards for bank-supervised stablecoin issuers. Reserve deposits backing stablecoins may receive FDIC insurance, but token holders themselves will not be covered under federal deposit protection. Regulators have opened a 60-day consultation window. According to a statement released on Tuesday, the board of directors voted to propose a rule that would set reserve, redemption, capital, risk management, and custody standards for stablecoin issuers, alongside insured depository institutions under the agency’s supervision. Per the proposal, reserve deposits that sit inside insured banks would qualify for deposit insurance coverage, but that protection would not extend to the holders of the stablecoins themselves. Officials said classifying token holders as insured depositors would run counter to the statute. In the agency’s view, treating them as such “seems inconsistent” with the GENIUS Act’s explicit prohibition on payment stablecoins being subject to federal deposit insurance.  However, the FDIC argues that the proposed framework would still provide a “secure environment” for stablecoin holders by offering “increased assurance that their payment stablecoins are subject to elevated regulatory and supervisory standards.” “Over the past two years, we’ve seen tremendous progress in this area, including a rapid shift in the posture of the federal government; enactment of the GENIUS Act, which establishes a framework for the regulation of payment stablecoins; and substantial technological development by both banks and nonbanks,” FDIC Chair Travis Hill said in a statement.  “As a result, development of stablecoin and tokenized deposit products continues to advance, and use cases continue to multiply.” The effort builds on the federal law signed in July, which formally placed stablecoin activity within a…

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Filed under: News - @ April 8, 2026 6:21 am