#FDICReleasesStablecoinGuidanceDraft

FDIC Releases Stablecoin Guidance Draft

The Federal Deposit Insurance Corporation (FDIC) has officially released a draft guidance framework for banks and their fintech subsidiaries that wish to issue or use stablecoins . The announcement was made by FDIC Chairman Travis Hill on April 7, 2026, as the agency moves to implement the GENIUS Act, the federal law signed by former President Trump that established regulatory guidelines for the stablecoin market .

Core Provisions of the Draft Framework

The proposed guidance establishes prudential standards across several key areas, including the composition and treatment of reserve assets, redemption mechanics, capital considerations, and enterprise-level risk management expectations .

Reserve Requirements

Stablecoin issuers must maintain one-to-one payment reserves equal to or greater than the total amount of stablecoins in circulation. Recognized reserve assets are strictly limited to highly liquid instruments, including US coins and cash, Federal Reserve Bank account balances, demand deposits, and US government bonds with a remaining maturity of 93 days or less .

Redemption Rules

Issuers must establish and disclose a clear policy requiring customer redemption requests to be processed within two business days at the latest. Any large-scale redemption request exceeding 10 percent of the total issuance within a 24-hour period must be reported to the FDIC immediately, and issuers cannot arbitrarily stop redemptions without authorization from the authorities .

Capital and Liquidity Requirements

Newly approved stablecoin issuers must retain at least 5 million dollars in capital for an initial period of at least three years. Additionally, issuers must separate and store an amount equivalent to their total operating expenses for the previous 12 months as highly liquid assets to prepare for potential business disruptions .

The FDIC is not yet prescribing a specific minimum capital amount or ratio, instead soliciting feedback on whether to create such a framework in future regulations .

Deposit Insurance and Stablecoin Status

The FDIC has made clear distinctions regarding deposit insurance coverage. Tokenized deposits recorded using distributed ledger technology will be recognized as legal deposits under the Federal Deposit Insurance Act and receive the same deposit insurance benefits as existing deposits .

However, payment stablecoins themselves are not backed by the US Treasury and are not covered by federal deposit insurance. This is designed to prevent misconceptions among consumers. The FDIC clarified that while the reserve deposits backing stablecoins are held at insured institutions, that protection does not extend directly to stablecoin holders. Advertising or implying that stablecoins are covered by US government guarantees or federal deposit insurance is completely prohibited .

Interest Payments and Lending Restrictions

Issuers cannot pay any form of interest or income to customers simply for holding or maintaining stablecoins. Additionally, providing credit to customers for the purpose of purchasing stablecoins is strictly prohibited .

AML Compliance Requirements

The proposed rule would require a permitted payment stablecoin issuer to certify that it has implemented anti-money-laundering and sanctions compliance programs reasonably designed to prevent the issuer from facilitating money laundering or the financing of terrorism .

Scope and Applicability

The FDIC's rulemaking is narrowly focused on entities subject to its supervision: subsidiaries of insured state nonmember banks and state savings associations that receive approval to issue stablecoins through a subsidiary . The proposal addresses application procedures, processing timeframes, and an appeal process for any denied applications .

Public Comment Period

The 197-page proposal is now open for public comment. The FDIC is seeking feedback on several issues, including whether stablecoins may pay yield, how capital requirements should be applied, and what insurance arrangements are appropriate. The comment period will last 60 days following publication in the Federal Register .

Next Steps

Following the public comment period, the FDIC plans to issue additional proposed rules establishing statutorily mandated capital, liquidity, and risk management requirements for stablecoin issuers. The agency is also collaborating with other regulatory bodies, including the Office of the Comptroller of the Currency and the Department of the Treasury, as cryptocurrency regulations continue to evolve .