Key Highlights
- FDIC approved a proposed rule to implement key GENIUS Act standards for FDIC-supervised stablecoin issuers.
- The proposal would require identifiable reserves, tailored capital and risk controls, and redemption within two business days.
- It also clarifies that tokenized deposits remain deposits if they meet the legal definition, regardless of the technology used.
The Federal Deposit Insurance Corporation (FDIC) has moved forward with a long-anticipated rulemaking that will shape how U.S. banks participate in the stablecoin economy. In a statement delivered at the Board meeting on April 7, 2026, FDIC Chairman Travis Hill said the proposal would implement many provisions of the GENIUS Act and offer added clarity on the agency’s stance toward stablecoins and tokenized deposits.
According to Hill, the proposed rule would establish prudential requirements for payment stablecoin issuers that operate as subsidiaries of FDIC-supervised banks. These requirements span reserve asset standards, redemption obligations, permissible and prohibited activities, and capital rules for both the issuer and its parent insured depository institution.
FDIC sharpens its stablecoin framework
Chairman Travis Hill said the proposal is meant to implement “many provisions” of the GENIUS Act while also giving the market more clarity on stablecoins and tokenized deposits. He said the proposal seeks feedback on 144 specific questions, including permissible and prohibited activities, capital treatment, pass-through insurance, and the law’s ban on yield.
FDIC is moving beyond its first GENIUS Act rulemaking from December 2025, which centered on application procedures for banks seeking approval to issue payment stablecoins through subsidiaries. Monday’s proposal turns to the operating standards those issuers would have to follow after approval.
The FDIC said comments on the latest proposal will be accepted for 60 days after publication in the Federal Register.
No pass-through insurance for stablecoin holders
One of the most closely watched parts of the proposal is deposit insurance. The FDIC said deposits held as reserves backing a payment stablecoin would not be insured to payment stablecoin holders on a pass-through basis.
Hill had previewed that direction in March, arguing that treating stablecoin holders as insured depositors would be hard to square with the GENIUS Act’s prohibition on marketing payment stablecoins as federally insured.
That could become a major point of debate during the comment period, especially for issuers and banking partners trying to position regulated stablecoins as safer payment instruments without crossing the line into deposit-like marketing. This is an inference based on the issues the FDIC itself flagged for comment.
Tokenized deposits get formal recognition
The proposal also addresses tokenized deposits, stating that deposits recorded in tokenized form would still be treated as deposits under the Federal Deposit Insurance Act if they meet the statutory definition. The agency said deposit insurance treatment should not depend on the technology or recordkeeping system used to reflect a bank’s deposit liabilities.
That is notable because U.S. regulators have spent the past year drawing a clearer line between bank-issued tokenized deposits and payment stablecoins issued under the GENIUS Act. The OCC proposed its own rule in late February to implement the stablecoin law for entities under its jurisdiction, and Hill said the FDIC’s proposal aligns with that framework in many respects.
Bitget CEO commented on the latest development, stating, “This rule establishes a clear regulatory framework for FDIC-supervised banks and their subsidiaries to issue payment stablecoins. This goes beyond banking, it provides a legitimate and secure pathway for traditional financial institutions to participate in stablecoin issuance, and directs the readiness of USD stablecoins to be integrated into the mainstream financial system.”
She added, “Stablecoins are already becoming imperative for global cross-border payments and value transfer. The implementation of this compliant framework will further reduce friction, improve efficiency, and enable faster, cheaper, and more inclusive capital flows.”
Open questions for Industry
The FDIC is seeking comment on a wide range of issues, with Hill highlighting 144 specific questions embedded in the proposal. Key areas where the agency is inviting feedback include which activities should be permissible or prohibited for stablecoin issuers, how capital should be calibrated, the FDIC’s approach to pass-through deposit insurance, and the statutory prohibition on paying yield to stablecoin holders.
Hill closed by thanking the FDIC staff for their work on the proposal and said he looks forward to reviewing industry comments as the rulemaking advances.
Also Read: Fed’s Michael Barr Warns Stablecoins Face Risks Despite GENIUS Act
