GENIUS Act Proposed Rules for Payment Stablecoin Issuers
Summary
The FDIC Board approved a notice of proposed rulemaking on April 7, 2026, to implement the GENIUS Act by establishing requirements for FDIC-supervised permitted payment stablecoin issuers (PPSIs) and insured depository institutions (IDIs) engaged in payment stablecoin activities. The proposed rule sets authorized/prohibited activities, reserve asset requirements, capital and risk management standards, and a two-business-day redemption requirement. The FDIC also clarifies that deposits held as stablecoin reserves are not insured on a pass-through basis to payment stablecoin holders.
What changed
The FDIC proposes implementing the GENIUS Act through a comprehensive framework governing payment stablecoin issuers supervised by the agency. Key requirements include maintaining identifiable reserve assets, meeting capital standards tailored to size and risk profile, implementing custodial and safekeeping requirements, and redeeming stablecoins within two business days. The proposal also addresses tokenized deposits and clarifies that deposit insurance does not extend to payment stablecoin holders on a pass-through basis.
FDIC-supervised banks and permitted payment stablecoin issuers should monitor this consultation closely, as it will establish baseline regulatory standards for the stablecoin industry. Institutions engaging in or planning stablecoin-related activities must prepare for new compliance obligations including capital requirements, reserve composition rules, and risk management frameworks. The 60-day comment period provides an opportunity for industry input before finalization.
What to do next
- Review proposed PPSI activity requirements and prohibited activities
- Assess capital, risk management, and custodial compliance requirements
- Determine applicability to your institution if involved in stablecoin or tokenized deposit activities
Archived snapshot
Apr 8, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
Notice of Proposed Rulemaking to Establish GENIUS Act Requirements and Standards for FDIC-Supervised Permitted Payment Stablecoin Issuers and Insured Depository Institutions
Laws and Regulations April 7, 2026
Summary:
On April 7, 2026, the FDIC Board of Directors approved a notice of proposed rulemaking that would implement the Guiding and Establishing National Innovation for U.S. Stablecoins Act by establishing requirements and standards applicable to FDIC-supervised permitted payment stablecoin issuers (PPSIs) and insured depository institutions (IDIs) that engage in payment stablecoin-related activities. In addition, the proposed rule would provide clarity to all IDIs with respect to FDIC deposit insurance coverage for deposits held at IDIs that serve as reserves of a PPSI’s payment stablecoin. The proposal also addresses tokenized deposits.
Statement of Applicability: The contents of, and material referenced in, this FIL apply to all FDIC-supervised financial institutions. The contents of, and material referenced in, this FIL apply to all FDIC-insured financial institutions.
Highlights:
- The proposed rule would set out authorized and prohibited PPSI activities.
- The proposed rule would require a PPSI to maintain identifiable reserve assets and would establish capital and risk management requirements and standards that are tailored to the size, complexity, and risk profile of a PPSI.
- The proposed rule would generally require PPSIs to redeem a payment stablecoin within two business days.
- The proposed rule would implement payment stablecoin-related custodial and safekeeping requirements for FDIC-supervised PPSIs and IDIs.
- The proposed rule would provide that deposits held as reserves backing a payment stablecoin would not be insured to payment stablecoin holders on a pass-through basis.
- The proposed rule would address tokenized deposits and provide that the application of deposit insurance to deposits does not depend upon the technology or recordkeeping used to record an IDI’s deposit liabilities.
- Comments on the proposed rule will be accepted for 60 days after publication in the Federal Register. FIL-11-2026 ## Attachment(s)
Federal Register Notice Approval Requirements for Issuance of Payment Stablecoins by Subsidiaries of FDIC-Supervised Insured Depository Institutions Extension of Comment Period
Related Topics
Deposit Insurance Digital Assets Fintech Information Technology Third-Party Relationships
Contact(s)
Division of Depositor and Consumer Protection Division of Risk Management Supervision Legal Division CISR Policy
Last Updated: April 7, 2026
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