FDIC Proposes Stablecoin Issuer Framework Under GENIUS Act

The Federal Deposit Insurance Corporation (FDIC) has introduced a proposed framework for stablecoin issuers under the GENIUS Act, initiating a 60-day public comment period with 144 questions. According to NS3.AI, the draft outlines capital, liquidity, and custody standards for U.S. depository institutions issuing stablecoins through subsidiaries. However, the final rule will be established only after further review. The proposal specifies that payment stablecoins will not be covered by deposit insurance, whereas tokenized deposits that meet the statutory definition of deposits will be treated similarly to other deposits. Additionally, the draft states that issuers are prohibited from claiming that payment stablecoins offer interest or yield simply for holding or using them, including through third-party arrangements.