The Federal Deposit Insurance Corporation Board approved its second Notice of Proposed Rulemaking under the GENIUS Act on 7 April 2026. The proposal targets FDIC-supervised permitted payment stablecoin issuers and insured depository institutions that engage in payment stablecoin activity. The notice opens a 60-day public comment period that runs from publication in the Federal Register. The agency has not finalised the rule.
The Guiding and Establishing National Innovation for U.S. Stablecoins Act, enacted in 2025, set the federal payment stablecoin regime. The Act gives the FDIC supervisory authority over permitted issuers organised as FDIC-supervised subsidiaries. The FDIC proposal requires redemption of a payment stablecoin within two business days. It applies custodial and safekeeping duties to reserves under the issuer or affiliate control. The notice also addresses tokenized deposits and confirms that the standard deposit insurance rules apply regardless of the ledger technology used to record the liability.
Permitted payment stablecoin issuers operating as FDIC-supervised subsidiaries face new compliance build-outs covering reserve segregation, redemption workflows, attestation reporting, and capital and liquidity expectations. Banks running tokenized deposit programs gain regulatory clarity on insurance coverage. Holders learn that reserves backing the stablecoin do not give them pass-through insurance protection if an issuer fails. State trust company issuers regulated by the OCC follow a parallel federal proposal published earlier this year.
The proposal interacts with the OCC parallel rulemaking and the Consumer Financial Protection Bureau role in consumer protection. Comments will concentrate on the two-business-day redemption requirement, the reserve composition list, the treatment of cross-border activity, and the scope of the deposit insurance carve-out. The FDIC has not set an effective date pending final adoption.
Licentium advises banks, fintech sponsors, and payment stablecoin issuers on GENIUS Act readiness, FDIC application strategy, and reserve management programs. Our partner network supports US-licensed counsel work. Contact our team to scope your stablecoin compliance posture. Work we undertake includes GENIUS Act readiness reviews, FDIC application packages, reserve management policies, redemption operational playbooks, and tokenized deposit legal opinions.
Source: Federal Deposit Insurance Corporation, FDIC Approves Proposal to Implement GENIUS Act Requirements and Standards, press release, 7 April 2026, https://www.fdic.gov/news/press-releases/2026/fdic-approves-proposal-implement-genius-act-requirements-and-standards, confirmed 21 May 2026.
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