FDIC to Block Stablecoin Insurance Under GENIUS Act

FDIC Chairman Travis Hill announced that stablecoin holders will not be eligible for U.S. deposit insurance under the GENIUS Act. According to NS3.AI, the agency intends to prevent the pass-through structure that could provide up to $250,000 of coverage to eligible depositors. Hill noted that most large stablecoin arrangements fail to meet the necessary customer identity requirements for this insurance model. The law is set to be fully implemented either 18 months after its signing or 120 days following the finalization of agency rules.