FDIC Moves Ahead with Proposal to Establish GENIUS Act Guidelines
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FDIC proposed rule to implement the GENIUS Act for banks issuing payment stablecoins, marking its second GENIUS Act rule and opening a 60‑day public comment period after Federal Register posting. Operational mandates: redemptions must complete within 2 business days; issuers must fully back tokens; no yield, no FDIC insurance claims, and no credit support for stablecoin purchases. Regulatory clarity should accelerate bank-issued stablecoin adoption and integration with CEX/DeFi rails, while the no-yield/no-insurance constraints limit yield-bearing product appeal.
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- FDIC moves to enforce GENIUS Act with a full prudential framework for stablecoin issuers.
- Redemption must be completed within two business days under normal conditions.
- No yield, no FDIC insurance claims, and no credit support for stablecoin purchase.
The Federal Deposit Insurance Corporation (FDIC) has approved a new proposed rule to implement key parts of the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act). The move sets a clear regulatory base for stablecoin issuers under FDIC oversight.
The rule targets banks and institutions that plan to issue payment stablecoins through subsidiaries. It defines how these products must be backed, redeemed, and managed.
As per a press release, public comments will remain open for 60 days after the proposal enters the Federal Register.
This marks the second GENIUS Act rule from the FDIC, fo…
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