The Federal Deposit Insurance Corporation (FDIC) Board of Directors has now approved a notice of proposed rulemaking that may implement certain requirements as well as applicable standards under the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act). The suggested rule may help with forming a prudential framework for FDIC-supervised permitted payment stablecoins issuers, such as relevant requirements pertaining to reserve assets, redemption, capital, along with applicable risk management standards.
The suggested rule may also establish requirements for FDIC-supervised permitted payment stablecoin issuers and insured depository institutions (IDIs) that offer various payment stablecoin related custodial and safekeeping services.
The proposed rule would also address the applicability of pass-through insurance to deposits that are held as reserves backing payment stablecoins.
Furthermore, it may clarify that the so-called tokenized deposits that meet the statutory definition of “deposit” will be treated “no differently” under the Federal Deposit Insurance Act than other types of deposits.
As mentioned in the update, comments on the proposed rule will be accepted for 60 days after official publication in the Federal Register.
The proposed rule announced is the FDIC’s second rulemaking implementing provisions of the GENIUS Act.
On December 19, 2025, the FDIC had issued a proposed rule that would establish application procedures for IDIs “seeking approval to issue payment stablecoins through a subsidiary.”
Under the Trump Administration, the digital assets sector has been able to move forward in a meaningful manner. Many of the new stablecoin and crypto-focused regulations have been introduced during this current Administration.
If the United States wants to maintain its decisive lead in the crypto and broader Fintech space, then these types of progressive regulatory frameworks are essential when it comes to enabling responsible innovation. They are also effective at ensuring adequate consumer protection, and striking a fine balance between tech advancements and proper oversight.
