reported<\/a>, the rule applies specifically to \u201cpermitted payment stablecoin issuers\u201d \u2014 a category the GENIUS Act defines as stablecoin issuers that are subsidiaries of federally insured depository institutions or entities authorized by a federal or state regulator.<\/p>\nFDIC Chair Travis Hill cited \u201ctremendous progress in this area\u201d over the past two years, pointing to the GENIUS Act\u2019s enactment and the acceleration of digital asset development by both banks and nonbank firms as drivers behind the formal rulemaking.<\/p>\n
What the 191-Page Proposal Actually Requires<\/h1>\n
The core requirements are clear. Stablecoin issuers covered by the rule must hold reserves on a strict 1:1 basis at all times against all tokens in circulation. Eligible reserve assets are limited to US dollars or highly liquid equivalents such as short-term US Treasury securities. Redemption must be honored within two business days. Capital and liquidity buffers are required. Custody arrangements must meet specific standards, and annual independent audits are mandatory for issuers with a market cap above $50 billion.<\/p>\n
Issuers with less than $10 billion in circulating tokens may operate under state-level supervision, provided those state frameworks meet a \u201csubstantially similar\u201d federal standard. The Treasury Department is simultaneously developing principles for evaluating which state regimes qualify, with its comment period running through June 2, 2026.<\/p>\n
The Critical Detail Token Holders Need to Know<\/h2>\n
The FDIC made its most consequential clarification explicit: stablecoin token holders will not receive federal deposit insurance protection. The reserve deposits held inside insured banks may qualify for FDIC coverage \u2014 protecting the issuer\u2019s reserves in case of bank failure \u2014 but that protection does not extend to the individuals holding the tokens themselves.<\/p>\n
<\/p>\n
This distinction matters. It means that if a permitted stablecoin issuer fails, token holders are not in the same position as a traditional bank depositor covered up to $250,000. The FDIC argued that treating stablecoins as FDIC-insured products \u201cseems inconsistent\u201d with the GENIUS Act\u2019s explicit language, which states that payment stablecoins are not subject to federal deposit insurance. The 1:1 reserve requirement is designed to be the structural safeguard in place of that insurance \u2014 but it is a different form of protection.<\/p>\n
What Happens Next Before This Becomes Law<\/h2>\n
As crypto.news reported, the 60-day comment period covers 144 specific questions, including how reserve buffers should be sized, what additional asset types should qualify, how concentration limits should work, and what bankruptcy-remote protections should look like. The comment period must close before July 18, 2026 \u2014 the GENIUS Act\u2019s regulatory deadline \u2014 leaving a tight window for finalization.<\/p>\n
As crypto.news noted, the OCC\u2019s February proposal similarly required 100% reserves and set application pathways for new issuers. The FDIC\u2019s rule aligns closely with that framework while adding its own supervisory standards for state nonmember banks and state savings associations. The two proposals together are building the federal regulatory architecture that will govern an estimated $316 billion stablecoin market.<\/p>\n
<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"
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