The Federal Deposit Insurance Corporation (FDIC) has introduced a new regulatory framework that begins to define how US banks and their subsidiaries can issue and regulate stablecoins. under the command of GENIUSwhich shows an important role in the management analysis of the dollar-denominated economy.
In the proposed law to be accepted on April 7, the FDIC outlined the requirements for “approved stablecoin payment issuers” (PPSIs), which are expected to operate as subsidiaries of institutions that are supervised by the FDIC. The plan establishes standards for reserves, redemption procedures, funds, investments, cybersecurity, and risk management, and is now open for 60 days for public comment.
This application meets the requirements of GENIUS Actknown as the Guiding and Establishing National Innovation for US Stablecoins Act, which directs federal banking regulators to create a unified framework for regulating the issuance of stablecoins in the United States.
Under the FDIC’s policy, issuers will be required to maintain full coverage stablecoins on a 1:1 basis with appropriate reserves. These reserves should be monitored daily and treated separately from other trading activities. Eligible assets include US dollars, balances at Federal Reserve Banks, insured bank deposits, short-term US Treasury stocks, and other overnight repurchase agreements.
This proposal also sets limits on the content of the database and restricts peer exposure. The FDIC states that eligible assets must remain liquid and low-risk in order to be redeemable during a crisis.
Redemption measures form the central part of the law. Issuers will be required to publish clear redemption policies and process redemption requests within two business days. If the maximum withdrawal exceeds 10% of the amount released within 24 hours, the issuer must notify the regulator and may request an extension.
FDIC capital liquidity cybersecurity framework
FDIC Chairman Travis Hill said in a prepared statement that the plan aims to address operational and financial stability issues as the use of stablecoins expands in payments.
The proposal also reflects the capital requirements for providers. New PPSIs will need to have a minimum investment of $5 million for the first three years of operation, with other requirements possible depending on the review of the administration. The continuing capital should have one phase of 1 phase and additional equipment of one phase.
In addition, donors will be required to maintain a deposit equal to 12 months of operating expenses. The FDIC explained that this buffer is separate from the buffer requirements of stablecoins.
The law regulates cybersecurity and operational resilience, requiring providers to maintain systems that cover privacy management, blockchain monitoring, incident response, and self-reporting. Annual certifications related to money laundering and anti-terrorist programs are also required.
The FDIC also clarified that fixed deposits made under the policy may not receive deposit insurance protection below the $250,000 limit. Deposits held in insurance companies can be seen as the funds of the issuing companies, not the holders of the stablecoin.
However, the proposal states that tokenized deposits that meet the legal definition of a bank deposit will receive permanent insurance coverage regardless of the technology used.
Actions by the FDIC they follow the first effort to comply with the GENIUS Act and comes with similar regulations from other banking regulators, including the Office of the Comptroller of the Currency.
The proposal is expected to be revised through a public comment process before final approval. The GENIUS Act sets a date for implementation by mid-2026, forcing regulators to finalize the stablecoin system in the coming months.
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