A proposed rule that addresses the applicability of pass-through insurance for stablecoins and tokenized deposits was issued for comment Tuesday by the federal bank deposit insurer.
The Federal Deposit Insurance Corp. (FDIC) said the proposed rule would implement certain requirements and standards under the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act). It said the proposal – out for a 60-day public comment period – would establish a prudential framework for FDIC-supervised permitted payment stablecoins issuers, including requirements related to reserve assets, redemption, capital, and risk management standards.
This is the FDIC’s second proposed rule under the GENIUS Act. In December, it issued a proposal to establish application procedures for IDIs seeking approval to issue payment stablecoins through a subsidiary. Tuesday’s proposed rule would establish requirements for FDIC-supervised permitted payment stablecoin issuers and insured depository institutions (IDIs) that provide certain payment stablecoin related custodial and safekeeping services.
Regarding deposit insurance, it said the proposal address the applicability of pass-through insurance to deposits held as reserves backing payment stablecoins and “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 National Credit Union Administration (NCUA) and the Office of the Comptroller of the Currency (OCC) issued GENIUS Act proposed rules in February. Comments are due April 13 on the NCUA’s proposal and May 1 on the OCC’s.
FDIC Approves Proposal to Implement GENIUS Act Requirements and Standards
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