The US FDIC proposes new regulations for stablecoin issuers based on the GENIUS Act

Golden Finance News reported that on April 8, the U.S. Federal Deposit Insurance Corporation (FDIC) voted on April 7 to put forward a proposed rule to establish a regulatory framework for stablecoin issuers, in order to implement the GENIUS Act that took effect last year after being signed into law by U.S. President Trump. The proposed rule will set reserve asset and risk management standards for “approved payment stablecoin issuers” (that is, depository institution subsidiaries that qualify, or issuers authorized by federal or state regulatory authorities). The FDIC said the new rule is intended to clarify whether deposits designated as reserve assets are eligible for deposit insurance coverage, and also reiterate that stablecoins do not have an explicit U.S. government credit guarantee and are not covered by federal deposit insurance. FDIC Chair Travis Hill said that, as traditional financial institutions move into the crypto space and crypto companies seek banking charters, the industry has grown rapidly in recent years, and the passage of the GENIUS Act provides a federal framework for stablecoin regulation. Previously, the Office of the Comptroller of the Currency (OCC) had issued relevant rules, and the Treasury Department also solicited public comments last week on state-level regulation for small stablecoin issuers. The FDIC’s comment period for the proposed rule is 60 days.