On 7 April 2026, the Federal Deposit Insurance Corporation (FDIC) Board of Directors voted at an open board meeting to approve a notice of proposed rulemaking (NPR) to implement the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. The proposed rule is at the notice-and-comment stage and will be published in the Federal Register, with public comments accepted for 60 days following publication.
The proposed rule would apply to FDIC-supervised permitted payment stablecoin issuers (PPSIs) and insured depository institutions (IDIs) engaged in payment stablecoin-related activities. Its core requirements include: limiting PPSIs to authorised activities and prohibiting specified others; requiring PPSIs to maintain identifiable reserve assets backing their payment stablecoin; and generally requiring redemption of payment stablecoins within two business days. The rule would also clarify deposit insurance coverage for deposits held at IDIs that serve as reserve assets of a PPSI's payment stablecoin, and address the treatment of tokenised deposits. The FDIC Board approved the measure with votes cast by Chairman Travis Hill, Director Gould, and Director Vought.
Banks and non-bank entities supervised by the FDIC that seek to issue payment stablecoins will need to meet the new PPSI standards. IDIs that hold reserves for PPSI programmes face specific disclosure and coverage rules. The proposed two-business-day redemption requirement sets a liquidity standard that will affect reserve asset composition and operational processes. The rule's clarification of deposit insurance for reserve deposits removes a prior area of uncertainty and affects how firms structure PPSI-IDI relationships.
The 60-day comment window after Federal Register publication gives market participants an opportunity to submit views on reserve requirements, redemption timelines, authorised activity scope, and deposit insurance treatment. The proposed rule is part of a broader federal effort to implement the GENIUS Act; other federal banking agencies are expected to issue parallel proposed rules applicable to their supervised institutions.
Our firm advises on US digital asset regulatory matters, including GENIUS Act compliance readiness, stablecoin issuance structuring, and bank-fintech regulatory analysis. We work with a dedicated partner network active in US federal financial regulation. Parties evaluating PPSI status or reserve structure obligations under the proposed rule are welcome to contact us. Our work covers: stablecoin licensing, payment system regulation, FDIC-supervised institution compliance, tokenised deposit frameworks, banking-as-a-service structuring, and federal regulatory comment submissions.
Source: FDIC, Notice of Proposed Rulemaking: GENIUS Act Requirements and Standards for FDIC-Supervised Permitted Payment Stablecoin Issuers and Insured Depository Institutions, approved 7 April 2026 at Open Board Meeting, available at https://www.fdic.gov/news/board-matters/2026/board-meeting-2026-04-07-1open; confirmed 30 April 2026.
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