The U.S. Federal Deposit Insurance Corporation (FDIC) has taken a major regulatory step by proposing new rules for FDIC-supervised stablecoin issuers. The proposal aligns with the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, passed nine months ago, aiming to create a structured framework for stablecoin operations under federal supervision.
The FDIC announced that its Board of Directors voted on April 7, 2026, to adopt a notice of proposed rulemaking. The regulatory framework will establish standards for reserve management, capital requirements, redemption, custody, and risk management for stablecoin issuers related to an insured depository institution.
The framework requires Federal Deposit Insurance Corporation-regulated stablecoin issuers to have enough backup funds, meet the requirements for capital and risk management, and have a two-day time for redemption. Furthermore, deposits used as reserve assets are not considered eligible for deposit insurance, as it is stated under the statutory definition of these assets according to U.S. banking law.
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FDIC Defines Insurance Scope On Reserves
The 191-page proposed rule targets permitted payment stablecoin issuers, which the GENIUS Act defines as subsidiaries of FDIC-insured banks or other approved entities. Stablecoin issuers must comply with the framework in terms of reserves and management. Moreover, the framework establishes that deposits working as reserve assets will receive FDIC deposit insurance rather than stablecoins.
In addition, Federal Deposit Insurance Corporation’s chief counsel Chantal Hernandez pointed out that the goal of this proposal is “to clarify deposit insurance coverage of deposits that serve as reserve assets.” On the other hand, Eugene Frenkel also noted that payment stablecoins do not receive support from the full faith and credit of the United States and do not fall into the deposit insurance coverage.
Public Comment and Industry Feedback
The regulation proposal will have a 60-day public comment period following the publication in the Federal Registry, inviting stakeholders’ comments. The Federal Deposit Insurance Corporation encourages industry participants to share opinions on 144 questions on stablecoin issuer regulation. This regulation proposal comes after a December 19 plan to establish an application process for permitted payment stablecoin issuance.
In total, the Federal Deposit Insurance Corporation regulates over 2,700 banks and savings associations and provides insurance of deposits in over 4,000 FDIC-insured institutions. As this regulation initiative is concerned, it is seen as the most important milestone of U.S. stablecoin regulation. The Office of the Comptroller of the Currency also implements additional regulations for stablecoins outside the FDIC.
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