What Did the FDIC Approve?
On April 7, 2026, the FDIC Board approved a proposed rule to establish regulatory standards for payment stablecoin issuers under the GENIUS Act. This is the FDIC’s second rulemaking under the Act, building on its earlier application process for bank subsidiaries seeking to become permitted payment stablecoin issuers.
The proposed rule translates the GENIUS Act’s statutory framework into specific prudential standards that regulated institutions will need to meet.
What Does the Proposal Cover?
Reserve and Redemption Requirements — Standards for backing payment stablecoins with qualifying reserve assets and procedures for timely redemption. These requirements ensure that every stablecoin in circulation is fully backed and redeemable at par value.
Capital and Risk Management — Prudential requirements for permitted payment stablecoin issuers, including minimum capital levels and risk oversight protocols designed to promote the financial stability of issuing entities.
Custodial Services — Operational requirements for FDIC-supervised institutions providing safekeeping and custodial services related to payment stablecoins, establishing clear standards for asset segregation and recordkeeping.
Deposit Insurance Treatment — Clarification that tokenized deposits meeting the statutory definition receive the same deposit insurance protections as traditional deposits. The proposal also addresses pass-through insurance coverage for stablecoin reserves held at insured depository institutions.
What Happens Next?
A 60-day public comment period begins upon publication in the Federal Register. Financial institutions, industry participants, and the public can submit comments on the proposed standards before they are finalized into binding regulation.
Why This Matters
This rulemaking moves the GENIUS Act from law to practice. For banks and credit unions considering stablecoin issuance or custodial services, these rules define the specific compliance requirements and operational standards they must meet. The deposit insurance clarifications provide legal certainty around how existing consumer protections apply to tokenized deposits and stablecoin reserves — a key question for institutions evaluating participation in the stablecoin ecosystem.