The US Federal Deposit Insurance Corporation has released a draft stablecoin framework that would supervise any US-based deposit institution issuing stablecoins through subsidiaries. The proposal sets minimum standards for capital, liquidity, and asset custody. The agency said those requirements are still being discussed, and a list of 144 questions in the draft will be open for public comment for 60 days before any final rule is decided.
Draft focuses on banks seeking to issue stablecoins
This is the second round of proposals after an earlier package published in December. The current draft is centered on what banks must satisfy in order to issue stablecoins. Under the proposal, the FDIC would oversee these activities when they are carried out through subsidiaries of US deposit institutions. The framework remains open to revision, and the agency has made clear that the final rules are not settled yet.
Deposit insurance would not extend to stablecoins
The draft draws a firm line between stablecoins and insured bank deposits. The FDIC said traditional deposit insurance coverage would not apply to stablecoins, meaning accounts holding crypto assets could not rely on the usual bank-backed guarantee. At the same time, existing rules would continue to apply to bank-issued tokens used specifically for payments if those tokens meet the legal definition of deposits.
Yield claims and reward programs remain under scrutiny
One of the most disputed issues is how reward structures tied to stablecoins should be treated. The Office of the Comptroller of the Currency had earlier discussed reward programs connected to stablecoins, and the industry has kept debating whether models involving third parties or promised yield can fit within compliant business practices. The FDIC said institutions issuing stablecoins cannot claim that customers will earn a return simply by holding or transacting in a stablecoin. Still, an emerging view inside the agency suggests that properly structured reward programs may not automatically violate the law.
Capital rules may be paired with an operating expense buffer
The agency also highlighted capital adequacy and operational safeguards. In the draft, stablecoin issuers would need to maintain enough capital to manage risks tied to their business model. Separate from that, regulators are also considering an additional buffer linked to operating expenses. The aim is to strengthen operational resilience rather than rely only on baseline capital requirements.
Congressional debate continues alongside agency rulemaking
The proposal is developing in parallel with legislative work in Washington. The Digital Asset Market Transparency Act, now under Senate review, would change parts of the legal framework for stablecoins. Advocacy groups across banking and crypto have spent months arguing over the treatment of yield-bearing stablecoins. Lawmakers have voiced optimism about reaching consensus, but no final vote has been scheduled. The report also notes that institutions involved in drafting the rules, including the US Treasury and the OCC, are currently led largely by Republican appointees, while the GENIUS Act has drawn strong bipartisan support as it advances through Congress.