FDIC Stablecoin Proposal
The FDIC issued a proposed rule for public comment establishing prudential requirements for payment stablecoin issuers that are subsidiaries of FDIC-supervised banks. The proposal mirrors the OCC’s February framework in key respects: it adopts the Genius Act’s ban on paying yield to stablecoin holders and presumes that third-party arrangements designed to replicate yield violate that ban. Issuers can rebut the presumption. The FDIC also made clear that stablecoin holders are not eligible for pass-through deposit insurance. The agency would treat issuer reserves as corporate deposits, insured only up to $250,000 per issuer account. Comment period extended to May 18.