Progress on the GENIUS Act continues as the FDIC sets out new prudential standards and opens the proposal for public comment.
The US Federal Deposit Insurance Corporation (FDIC) has increased its oversight of stablecoins with a proposal to set new prudential standards for issuers it supervises.
The notice of proposed rulemaking (NPR), announced on 7 April, is part of the rollout of the GENIUS Act, the federal law creating the first nationwide regulatory framework for payment stablecoins.
Under the proposal, “permitted payment stablecoin issuers” must hold adequate reserves, follow strict redemption timelines, maintain sufficient capital and manage operational risks.
Rules apply to non-bank issuers under FDIC supervision, as well as banks providing custodial or safekeeping services for stablecoins.
The NPR also notes how deposit insurance applies to stablecoins, stating deposits held as reserves may qualify for pass-through coverage if certain conditions are met, while tokenized deposits that meet the legal definition of a “deposit” will receive the same protections as other insured accounts.
Following the announcement, the FDIC has said it will accept comments on the proposal for 60 days after it appears in the Federal Register, the US government’s official record of new rules and notices.
What the FDIC proposal covers
The FDIC’s proposal sets operational rules aimed at protecting both consumers and the broader financial system.
Issuers must back stablecoins with one-to-one reserves made up of highly liquid assets, such as US dollars, insured bank deposits, or short-term Treasury securities. Reserves for each stablecoin “brand” must be kept separate from the issuer’s own corporate funds.
Redemption rules require stablecoins to be redeemable at their full value within two business days. If redemptions exceed 10% of the total supply in a 24-hour period, a “circuit breaker” allows the issuer to delay redemptions temporarily to ensure stability.
New issuers are required to hold at least $5m in capital and keep a separate pool of liquid assets to cover 12 months of operating expenses. This aims to ensure the business can continue running without using customer reserves.
The NPR also bans issuers from paying interest to holders, using US government branding, or lending out reserve assets. Custodial banks holding reserves must treat them as customer property, keep them protected from creditors in the event of bankruptcy and publish monthly reports verified by an auditor.
The FDIC says these rules are meant to keep stablecoins safe and reliable as a payment tool rather than a speculative investment.
Part of a wider federal push
The FDIC’s NPR is one step in a larger effort to put the GENIUS Act into practice, following the law passing the House in July 2025.
In December 2025, the FDIC published rules for banks wanting to issue stablecoins through subsidiaries. These rules explained how banks must operate, manage risk and protect customer funds.
The Office of the Comptroller of the Currency (OCC) followed in February 2026 with a 376-page proposal, which covered national bank subsidiaries, federally licensed non-bank issuers, state-qualified issuers and foreign firms serving US customers.
Credit unions are included in the framework as well, with the National Credit Union Administration (NCUA) publishing its own proposal earlier this year to cover stablecoin issuance through credit union subsidiaries.
The rules are designed to clarify the roles and responsibilities of banks, non-bank issuers, and federal regulators, ensuring each party knows its obligations under the GENIUS Act.
According to the FDIC, the law takes effect either 18 months after it was passed (18 January 2027) or 120 days after all primary regulators finalise their rules.
Want to hear more stories like this? Check out the new SBC Media YouTube Channel, the new home of all things multimedia at SBC, where our team deep-dives into the biggest stories from across the sports betting, iGaming, affiliate and payments industries.
