The Federal Deposit Insurance Corporation has moved into the rulemaking stage for stablecoin oversight, releasing a proposal on April 7 that sets out five core standards for covered issuers under the GENIUS Act. The draft requires full 1:1 reserve backing, redemption completed within two business days, and formal standards for capital, risk management, and custody. It is the first detailed implementation step since the law was signed nine months ago.
Proposal sets out reserve, capital, and custody standards
The FDIC board approved the rulemaking proposal and opened a 60-day public comment period. The agency included 144 questions for industry participants and the public. Under the current timeline, the final rule is expected to take effect on January 18, 2027, while federal banking agencies must complete their rulemaking by July 18, 2026.
For banks that choose to issue through a separate permitted payment stablecoin issuer, or PPSI, subsidiary, the proposal sets a $5 million minimum capital requirement for the first three years. A PPSI would also need to hold highly liquid assets equal to 12 months of operating expenses, and those funds must be kept fully separate from the 1:1 reserve pool.
Stablecoin holders would not receive FDIC protection
The proposal draws a firm line on deposit insurance. According to the FDIC, holders of stablecoins would not be treated as direct beneficiaries of federal deposit insurance. The agency said that while the deposits backing a stablecoin reserve may themselves be covered, users holding the stablecoin would not gain federal protection on that basis.
The FDIC also distinguished tokenized deposits from stablecoins. If a tokenized deposit meets the legal definition of a deposit, it may still qualify for FDIC insurance. Stablecoins would follow a separate regulatory path. The distinction is central to the agency’s approach.
OCC is advancing a parallel federal track
The FDIC is not acting alone. The Office of the Comptroller of the Currency is also developing implementing rules under the GENIUS Act, with a broader scope that extends beyond national bank subsidiaries to certain nonbank stablecoin issuers. That gives the OCC proposal a wider supervisory perimeter than the FDIC draft.
This is the FDIC’s second proposal tied to the GENIUS Act. Its first proposal, released on December 19, 2025, focused on the application framework rather than detailed operating standards. FDIC Chair Travis Hill has led the push. The agency currently insures deposits at more than 4,000 financial institutions and supervises over 2,700 banks.