The Federal Deposit Insurance Corporation approved a new proposal that sets out how US banks and their subsidiaries could issue and manage stablecoins under federal oversight. The agency’s board of directors adopted the notice of proposed rulemaking on April 7, according to an official statement.
The proposal implements provisions of the Guiding and Establishing National Innovation for U.S. Stablecoins Act, known as the GENIUS Act. It introduces a prudential framework for entities defined as permitted payment stablecoin issuers, which operate under FDIC supervision.
The rule marks the second step in the agency’s rollout of the law. On December 19, 2025, the FDIC issued a separate proposal that focused on application procedures for insured depository institutions that want to issue stablecoins through subsidiaries.
Today, our Board of Directors approved a proposed rule that would establish requirements under the GENIUS Act for FDIC-supervised stablecoin issuers.https://t.co/VAnMhwyGo5 pic.twitter.com/1A8sqGRlvk
— FDIC (@FDICgov) April 7, 2026
Reserve structure and redemption rules take center stage
The framework requires issuers to maintain full backing of stablecoins on a one-to-one basis with eligible reserve assets. These assets include US currency, balances held at Federal Reserve Banks, insured bank deposits, short-term US Treasury securities, and certain overnight repurchase agreements.
The FDIC stated that reserve assets must remain highly liquid and low risk. Issuers must monitor these reserves daily and hold them separately from other business activities. The proposal also introduces concentration limits and restrictions on counterparty exposure.
Redemption rules form a central part of the proposal. Issuers must publish clear redemption policies and process requests within two business days under normal conditions. If withdrawals exceed 10% of total issuance within a 24-hour period, issuers must notify regulators and may request additional time.
These requirements reflect early stress points seen in digital asset markets, where liquidity pressure can escalate quickly when confidence weakens.
Capital and liquidity buffers add operational pressure
The proposal introduces minimum capital requirements for new issuers. Each permitted payment stablecoin issuer must hold at least $5 million in capital during its first three years of operation. Supervisors may impose additional requirements based on risk assessments.
Capital must consist primarily of common equity tier 1 and additional tier 1 instruments. The FDIC also requires a separate liquidity buffer equal to 12 months of operating expenses. This buffer stands apart from the reserves that back issued stablecoins.
FDIC Chair Travis Hill said in prepared remarks that the framework addresses operational risk and financial stability concerns as stablecoin use expands in payment systems.
The structure places clear financial obligations on issuers at an early stage. It also raises the threshold for entry, particularly for smaller firms that lack access to significant capital.
Custody, cybersecurity, and compliance obligations expand
The proposal sets detailed requirements for custody and safekeeping services provided by FDIC-supervised institutions. It also applies to insured depository institutions that support stablecoin-related activities.
Issuers must maintain systems that cover private-key management, blockchain monitoring, incident response, and independent audits. The rule also requires annual compliance certifications tied to anti-money laundering and counter-terrorist financing programs.
These provisions reflect increased scrutiny on operational resilience. The FDIC aims to reduce risks linked to technical failures and security breaches, which have affected parts of the crypto sector in the past.
Insurance limits clarified for stablecoin holders
The FDIC clarified how deposit insurance applies within the framework. Reserve deposits held at insured institutions may qualify for pass-through insurance treatment, depending on structure and compliance.
However, the protection does not extend to stablecoin holders themselves. The agency stated that treating holders as insured depositors would conflict with the GENIUS Act’s prohibition on applying federal deposit insurance to payment stablecoins.
At the same time, the proposal confirms that tokenized deposits that meet the legal definition of a deposit will receive the same treatment as traditional deposits under the Federal Deposit Insurance Act.
This distinction separates stablecoins from tokenized bank liabilities. It also creates a clearer legal boundary between payment instruments and insured deposits.
Public feedback period opens as timeline tightens
The FDIC invited public comments on the proposal and will accept feedback for 60 days after publication in the Federal Register. The agency included a broad set of questions to guide responses on implementation details.
The rule arrives as part of a broader regulatory push tied to the GENIUS Act, which was signed into law in July and is scheduled to take effect by January 2027, if not earlier.
Other regulators continue parallel efforts. The Office of the Comptroller of the Currency is also working on rules that cover a wider range of stablecoin activities, including oversight of national bank subsidiaries and certain nonbank issuers.
The timeline leaves limited room for delays. Regulators must finalize a coordinated framework before the statutory deadline, while market participants prepare for stricter requirements across issuance, custody, and compliance.
Anastasiia G
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