U.S. FDIC Chair Says Plan to Clarify Stablecoins Are Excluded From Deposit Insurance Coverage
Summary
- FDIC Chair Travis Hill said the agency is pursuing rules to exclude stablecoins from deposit insurance coverage.
- He said that under the GENIUS Act, holders of payment stablecoins are not eligible for deposit insurance protection.
- He added that, under the GENIUS Act interpretation, deposit insurance via third-party institutions would also not be permitted.
Forecast Trend Report by Period
The U.S. Federal Deposit Insurance Corp. (FDIC) is moving to clarify rules that exclude stablecoins from coverage under deposit insurance.
According to crypto-focused media outlet CoinDesk on the 11th (local time), FDIC Chair Travis Hill said that under the GENIUS Act, holders of payment stablecoins are not eligible for deposit insurance protection.
He said, "I plan to propose a new rulemaking to clarify that payment stablecoins subject to the GENIUS Act are excluded from insurance coverage."
He added, "While the GENIUS Act does not explicitly prohibit this, I believe this interpretation aligns with the intent of the law," and said, "Deposit insurance provided via third-party institutions would also not be permitted."
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
