The Federal Deposit Insurance Corporation has approved a draft stablecoin rule that would set operating standards for payment token issuers under federal bank supervision. The proposal focuses on reserve assets, redemption rights, capital, risk controls, and custody obligations for insured banks, while addressing a central question in US policy: whether digital dollar payment tokens should be treated as bank deposits.
The rule is not final. The FDIC said the public will have 60 days to submit comments after the draft is published in the Federal Register. Even at this stage, the proposal matters because it gives banks, issuers, and custody providers a clearer sense of how the GENIUS Act could be turned into enforceable operating rules.
Full backing and fast redemption are at the center
Under the draft, issuers of payment tokens would have to maintain reserve assets that fully back outstanding tokens. Those reserves must be safe, liquid, and easy to value. The logic is simple: if users ask to redeem, the issuer should be able to return funds quickly without relying on risky or hard-to-price assets.
The FDIC also calls for a public redemption policy. In most cases, redemptions should be completed within two business days. The proposal adds capital requirements as well, along with a liquidity buffer tied to operating costs, aiming to support both day-to-day activity and resilience under stress.
No pass-through insurance for payment token holders
Deposit insurance treatment is another major point in the draft. The agency said deposits held as reserves would not pass insurance coverage through to the holders of payment tokens. Instead, those balances would be treated as deposits of the issuer. That approach tracks the GENIUS Act, which does not classify payment tokens as federally insured products.
The draft also separates payment tokens from tokenized deposits. If a tokenized liability meets the legal definition of a deposit, it would be handled under existing deposit law like any other deposit. For banks exploring blockchain-based payment tools, that clarification is significant. The legal outcome depends on the nature of the product, not on whether blockchain is used to record it.
Custody rules and market structure are now in focus
The proposal reaches beyond issuers alone. It would also apply to insured banks that offer custody or safekeeping services for these products. Banks, custody firms, exchange-linked companies, and stablecoin issuers are likely to examine the final wording closely, especially around yield features, rewards, reserve backing, and supervisory boundaries. Debate in those areas has already shaped sentiment around companies such as Circle and Coinbase.
This FDIC move also sits within a broader federal effort to build a common framework for regulated digital payment assets. That work includes other banking agencies such as the Office of the Comptroller of the Currency. Attention is now shifting to the comment period, possible revisions to the text, and whether agencies align on a consistent standard.
What the draft makes clear is that expansion in regulated digital dollar products may depend on compliance discipline, reserve quality, clear redemption mechanics, and user protection. The next version of the rule will show how far that framework goes.