What Did the FDIC Approve?
The Board’s vote
On April 7, 2026, the FDIC Board approved a proposed rule setting regulatory standards for payment stablecoin issuers under the GENIUS Act. It is the FDIC’s second rulemaking under the Act. The first created an application process for bank subsidiaries seeking to become permitted payment stablecoin issuers.
From law to standards
The rule turns the GENIUS Act’s statutory framework into specific prudential standards. Regulated institutions have to meet them.
What Does the Proposal Cover?
Reserve and Redemption Requirements
Standards for backing payment stablecoins with qualifying reserve assets, plus procedures for timely redemption. Every stablecoin in circulation stays fully backed and redeemable at par value.
Capital and Risk Management
Requirements for permitted payment stablecoin issuers: minimum capital levels and risk oversight protocols. Both target the financial stability of the issuing entity.
Custodial Services
Operational requirements for FDIC-supervised institutions that provide safekeeping and custodial services for payment stablecoins. The rule sets standards for asset segregation and recordkeeping.
Deposit Insurance Treatment
Tokenized deposits that meet 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 when the rule publishes in the Federal Register. Financial institutions, industry participants, and the public can comment on the standards before they become binding regulation.
Why This Matters
This rulemaking moves the GENIUS Act from law to practice. For banks and credit unions weighing stablecoin issuance or custodial services, it defines the compliance requirements and operational standards they have to meet. The deposit insurance clarifications spell out how existing consumer protections apply to tokenized deposits and stablecoin reserves. That question sits at the center of any institution’s decision to participate.
