FDIC plans to clarify that stablecoin holders do not enjoy deposit insurance coverage

robot
Abstract generation in progress

BlockBeats News, June 9 — According to PYMNTS, the U.S. Federal Deposit Insurance Corporation (FDIC) is seeking public comment on the implementation rules related to the GENIUS Act, and plans to clarify that payment-type stablecoins themselves are not considered insured deposits, and that stablecoin holders do not enjoy FDIC deposit insurance coverage.

Under the proposal, when stablecoin reserve assets are held at banks, they will be treated as corporate deposits of the stablecoin issuer and will receive corresponding insurance, rather than providing pass-through insurance to stablecoin holders. The FDIC believes the arrangement is consistent with the GENIUS Act’s provisions that payment-type stablecoins are not protected by FDIC deposit insurance.

In addition, various comments also focused on stablecoin interoperability, reporting standards, user incentive mechanisms, and reserve custody and redemption rules. Some banking institutions called for banning stablecoin issuers from attracting funds through interest, cashback, or rewards, to prevent bank deposits from migrating into the stablecoin system. The FDIC proposal also requires issuers to maintain highly liquid reserve assets, limit the share of reserve assets held by any single financial institution to no more than 40%, and further strengthen requirements for asset segregation, custody controls, and redemption management.

View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pinned