Look at what just came out of the regulatory oven in the EUA. The FDIC (Federal Deposit Insurance Corporation) has just laid out its formal proposal to regulate stablecoin issuers under the GENIUS Act. Basically, we’re seeing the second round of regulation from this agency, after it had already released the application rules there in December.

The interesting point is that the FDIC is aligned with what the OCC (Office of the Comptroller of the Currency) had already proposed in February. The agency opened a 60-day public comment period covering 144 very specific questions. That’s a lot of detail indeed.

So what has the FDIC established? Capital, liquidity, and custody standards for depository institutions that issue stablecoins. But hold on—the final details will only come out once this rule is finalized, which shouldn’t happen anytime soon. It will take a few more months as the agency processes the comments and adjusts the final wording.

One point that sparked debate: stablecoins will not have deposit insurance like traditional bank accounts. That was clear in the proposal. In addition, issuers can’t simply claim that their tokens pay interest or yield just because you’re holding the stablecoin. Not even through arrangements with third parties like exchanges. But here’s the detail—cryptography specialists are more comfortable because well-structured reward programs probably won’t be banned.

The FDIC also addressed technical issues around operational capital that issuers need to maintain, separate from the capital requirements themselves. And there’s more: the agency proposed that tokenized deposits that meet the legal definition of a deposit be treated the same as other deposits when it comes to pass-through insurance.

The political context here is interesting. With Republican appointees at the regulatory agencies and no Democrats there to raise objections, regulators have room to implement this the way Republicans want. Even so, when the GENIUS Act became law, it had substantial bipartisan support.

There are also parallel discussions in the Senate about the Digital Asset Market Clarity Act, and a conflict between the banking sector and crypto over yield-bearing stablecoins that has been going on for months. Lawmakers said they’re close to resolving it, but the bill still hasn’t moved forward to the necessary hearing. Congress returns from recess at the end of the week, so things could move.

Overall, the FDIC is putting together a very specific framework. It will be interesting to see how the crypto community reacts over the next 60 days of comments. This regulation could become a watershed moment for how stablecoins work in the EUA.