FDIC proposes GENIUS Act rules for stablecoins: 1:1 reserves, 2-day redemptions and new capital rules

The Federal Deposit Insurance Corp. approved a proposed rule to establish a prudential framework for payment stablecoin issuers under the GENIUS Act, setting out reserve, capital and deposit standards intended to bring stablecoin issuance closer to federal banking rules ^{[1] [2]}.

The proposal includes specific operational requirements for bank-backed stablecoins — including 1:1 reserves and two-day redemptions — and clarifies that tokenized deposits meeting the deposit definition would be treated equally under federal deposit rules ^{[3] [2] [4]}.

Separately, the FDIC outlined a comprehensive capital and liquidity framework for stablecoin issuers that would apply to FDIC‑supervised insured depository institutions offering custodial or safekeeping services for tokenized deposits ^[1].

The FDIC’s action is a proposed rule rather than a final regulation and arrives as lawmakers continue debating the broader GENIUS Act framework in Congress ^[1].