The Federal Deposit Insurance Corporation (FDIC) has proposed a new framework that would impose bank-style oversight on payment stablecoin issuers, including tighter rules on redemptions, reserves and yield-bearing structures.
FDIC Proposes Stricter Rules for Stablecoins on Yield, Redemptions, Reserves
8 April 2026 - 11:30 CEST
By Ana Pereira
In a notice of proposed rulemaking, the agency is seeking to strengthen guardrails for how stablecoins operate under stress. Issuers would be required to meet redemptions within two business days and notify regulators if outflows exceed 10% of outstanding tokens in less than 24 hours.
The proposal also introduces limits on reserve management, including caps on exposure to individual banking partners and restrictions on reusing assets that back the tokens. Issuers would face more continuous supervision and be required to provide regular disclosures on reserves.
The measures implement key provisions of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, signed into law by President Donald Trump in July 2025.
After receiving board approval on 7 Apr, the FDIC opened a public comment period before finalizing rules that would become binding on stablecoin issuers. The agency oversees banks and insures deposits at member institutions.
Yield loopholes targeted
The framework would prohibit issuers from offering interest or yield solely for holding a stablecoin, in line with restrictions set out in the GENIUS Act. The FDIC goes further by extending the ban to certain affiliate and third-party arrangements, aiming to close potential workarounds where yield is routed through intermediaries.
While the rule does not directly regulate crypto exchanges or platforms, its broad scope suggests regulators are looking to limit yield-bearing structures tied to stablecoin issuance. The FDIC explicitly seeks public comment on whether the ban should also apply to these parties.
No insurance for holders
The proposal draws a clearer line between payment stablecoins and tokenized deposits, treating them as distinct products. Stablecoins would be backed by reserves, while tokenized deposits would function more like traditional bank accounts.
Under existing FDIC rules, insurance typically covers up to $250,000 per depositor. However, in this case the "depositor" would be the stablecoin issuer itself, not the end user.
"The proposed rule would also amend the deposit insurance coverage rules… by clarifying that deposits held as reserves backing a payment stablecoin would be insured to the Permitted Payment Stablecoin Issuers (PPSI) under the FDIC’s coverage rules for corporate deposits, but would not be insured to payment stablecoin holders on a pass-through basis," the notice says.
The structure would leave most reserves uninsured, reinforcing the divide between stablecoins and traditional bank deposits, while still allowing banks to issue their own tokens.
The GENIUS Act is scheduled to take effect on 18 Jan 2027 or 120 days after final regulations are issued, whichever comes earlier.
