FDIC Unveils Stablecoin Rules Under GENIUS Act, Including Capital and Liquidity Standards
Summary
- The US FDIC said it is discussing implementation of the GENIUS Act and has presented regulatory standards for stablecoin issuers that include capital and liquidity requirements.
- The proposed rules include capital requirements, liquidity standards and custody-related provisions for issuers, though the details could change before the final rule is adopted.
- The FDIC said stablecoins would not receive depositor protection comparable to traditional bank deposits, and it plans to finalize the 144-item framework after a 60-day public comment period.
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The Federal Deposit Insurance Corp. is moving forward with discussions on implementing the GENIUS Act and has outlined regulatory standards for stablecoin issuers, including capital and liquidity requirements.
CoinDesk reported on Aug. 7 that the FDIC released the proposed framework at a board meeting on rules for institutions that issue stablecoins. The FDIC, which supervises US depository institutions, would be responsible under the GENIUS Act for regulating stablecoin-issuing subsidiaries.
The proposal includes capital requirements for issuers, liquidity standards and custody-related rules. Those details could change before the final rule is adopted.
The FDIC also clarified that stablecoins would not receive depositor protection comparable to traditional bank deposits. The proposal further sets standards for the capital issuers must maintain against operational risk and for operating expenses.
The framework contains 144 items. The FDIC plans to collect public comments for 60 days before revising and finalizing the rules.
JH Kim
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