The Federal Deposit Insurance Corporation approved a proposed rule on April 7 to put the GENIUS Act’s stablecoin standards into operation, spelling out how U.S. banks and their subsidiaries could issue payment stablecoins. The proposal lays out requirements for reserves, redemption, and risk controls, aiming to place stablecoin issuance inside a formal supervisory structure tied to FDIC-supervised insured depository institutions.
Eligible reserves must fully back tokens and be monitored every day
Under the proposal, permitted payment stablecoin issuers would have to maintain backing on a one-to-one basis with eligible assets. Those assets include U.S. currency, insured deposits, and short-term Treasury securities. The reserves must also be kept separate from other operations and subject to daily monitoring. In practice, that would require issuers to ring-fence the assets supporting circulating tokens rather than treat them as part of general operating funds.
The framework also sets expectations around capital planning and enterprise risk management. The rule is not limited to token issuance mechanics. It reaches into balance-sheet management, internal controls, and the operational standards expected of institutions issuing stablecoins from within the banking system.
Most redemption requests would need to be handled within two business days
Redemption is another central piece of the draft. The FDIC says issuers must process most redemption requests within two business days. If withdrawals exceed 10% in a single day, the institution would need to notify regulators. That adds a reporting trigger for periods of heavier outflows and links redemption operations directly to supervisory oversight.
For capital and liquidity, new issuers would be required to hold at least $5 million in capital during their first three years. They would also need a liquidity buffer sufficient to cover 12 months of operating expenses. The agency has not finalized a broader capital framework, though. Instead, it is asking for feedback on future requirements before locking in a wider standard.
AML, sanctions controls, cybersecurity, and audits are built into the proposal
The rule goes beyond reserve management. Issuers would need to provide anti-money laundering and sanctions compliance certifications, showing that they have systems in place to prevent illicit financial activity. Cybersecurity controls and independent audits are also included among the operating requirements. The structure treats stablecoin issuance as a banking compliance function, not simply a payments product.
The FDIC also addressed how deposit insurance applies to reserve assets. It said reserves held in banks would qualify as corporate deposits rather than individual customer holdings, which means standard deposit insurance does not extend directly to stablecoin users. At the same time, tokenized deposits that meet legal definitions under existing law would receive equal treatment under current banking rules, reducing uncertainty over how digital deposits are classified.
Public comment period will run for 60 days
The proposal will remain open for public comment for 60 days after publication in the Federal Register. The FDIC said this is its second rulemaking under the GENIUS Act, following a proposal on application procedures released in December 2025. The rule is not final yet, but the outline for stablecoin issuance inside the U.S. banking system is now much clearer.