The FDIC board today advanced proposed rulemaking to implement certain provisions of the Genius Act, including requirements for reserve assets, risk management, and stablecoin-related custodial and safekeeping services.
Enacted into law last year, the Genius Act established a regulatory framework for payment stablecoins. The Office of the Comptroller of the Currency proposed rulemaking in February to implement the law. The FDIC proposal aligns with the OCC rule in many aspects, FDIC Chairman Travis Hill said.
Among other things, the FDIC proposal would amend its deposit insurance rules to prevent payment stablecoins from being eligible for pass-through insurance. At the same time, it would clarify that tokenized deposits that satisfy the statutory definition of “deposit” would be treated no differently under the Federal Deposit Insurance Act than any other types of deposits. The rule also would establish the criteria the agency will use to determine whether an issuer violated the law’s prohibition on payment of yield or interest on stablecoins.
Hill said that as part of the public comment process, the FDIC is seeking feedback for 144 questions on Genius Act implementation. Comments are due 60 days after publication in the Federal Register.
