FDIC Advances Stablecoin Oversight Framework Under GENIUS Act With New Prudential Rule Proposal
By Micah Zimmerman
The FDIC has approved a proposed rule under the GENIUS Act to regulate stablecoin issuance by U.S. banks and their subsidiaries as permitted payment stablecoin issuers (PPSIs). The framework mandates 1:1 reserves with eligible high-quality assets, strict redemption policies within two business days, and standards for capital, liquidity, cybersecurity, and risk management. The proposal is open for a 60-day public comment period.
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