The Federal Deposit Insurance Corporation has introduced a proposed rule aiming to establish prudential standards for payment stablecoin issuers that it oversees, following recent legislative efforts under the GENIUS Act. This move signals a renewed focus on drawing digital asset activity into the regulated banking sector by clarifying expectations for both tokenized deposits and reserve-backed stablecoins.
Framework targets stablecoin issuers and custodial service providers
The draft rule applies to insured depository institutions (IDIs) supervised by the FDIC that issue permitted payment stablecoins. It sets specific expectations around managing reserve assets, structuring redemption policies, maintaining sufficient capital levels, and addressing risk management. If finalized, these requirements would shape how stablecoins are issued and handled by federally insured banks, bringing their operations into closer alignment with established banking practices.
Banks offering custodial and safekeeping services related to stablecoins will also fall under tailored requirements within this framework. By doing so, the FDIC aims to ensure that digital asset custody adheres to the same standards applied to more traditional banking activities, narrowing potential gaps in oversight.
The latest proposal comes as part of broader efforts to implement the GENIUS Act, a legislative package designed to create a unified approach to U.S. stablecoin regulation. Following months of legislative discussion and industry consultation, the FDIC’s board supported the proposed rule and initiated a public comment process.
FDIC, founded in 1933, is an independent U.S. government agency responsible for insuring deposits and supervising financial institutions, with regulatory oversight for banking practices and financial stability. The agency has begun to play an increasingly hands-on role in shaping digital asset policy within the American banking system in recent years.
Deposit insurance and tokenized deposit clarity
A key provision within the draft rule addresses pass-through insurance for deposits held as stablecoin reserves. For banks managing reserve-backed stablecoins, this clarification on how existing federal deposit insurance applies could help create more consistency and transparency for both issuers and customers.
Additionally, the rule takes up the question of tokenized deposits. If these digital entries meet the official definition of a deposit, they will receive the same insurance coverage as other qualifying deposits under the Federal Deposit Insurance Act, helping to remove uncertainty for financial institutions exploring tokenized product offerings.
Industry participants and stakeholders now have a 60-day window from official publication to comment on the proposal. This public engagement process is intended to shape the final rule and ensure that feedback from both financial and crypto sectors is considered before implementation.
The proposed rule represents the FDIC’s second major regulatory initiative under the GENIUS Act, building upon guidance issued in December 2025 outlining how institutions could apply to issue payment stablecoins through subsidiaries. Lawmakers and regulators are aiming for a more harmonized approach that provides clarity while safeguarding depositors and market integrity.
As the GENIUS Act continues to progress, stakeholders expect a more defined regulatory environment for stablecoin activities within the traditional banking system. The FDIC’s latest proposal highlights the evolving intersection between federal oversight and innovation in the digital asset space.
