FDIC proposes stablecoin issuer rules

The Federal Deposit Insurance Corp. (FDIC) has formally proposed rules for stablecoin issuers, aligning with the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. This proposal, open for a 60-day public comment period, follows a similar one from the Office of the Comptroller of the Currency. The FDIC's focus is on regulating subsidiaries of depository institutions that issue stablecoins, outlining capital, liquidity, and custody standards. Notably, stablecoins will not receive the same deposit insurance as traditional bank accounts. The agency also addressed concerns about yield programs, stating issuers cannot represent tokens pay interest simply for holding them.