FDIC OKs Proposal to Implement Genius Act Requirements

The FDIC Board of Directors approved a notice of proposed rulemaking that would implement certain requirements and standards under the GENIUS Act.

• Proposed rule would establish a prudential framework for FDIC-supervised permitted payment stablecoins issuers
  • Includes requirements related to reserve assets, redemption, capital and risk management standards
• Proposed rule would establish requirements for FDIC-supervised permitted payment stablecoin issuers and insured depository institutions
• Proposed rule would address applicability of pass-through insurance to deposits held as reserves backing payment stablecoins
  • Clarify that tokenized deposits that satisfy the statutory definition of “deposit” would be treated the same as any other types of deposits ...