FDIC Proposes New Rules for Stablecoin Issuers Under GENIUS Act

The Federal Deposit Insurance Corporation (FDIC) has proposed new rules to regulate stablecoin issuers under the GENIUS Act framework, focusing on enhanced transparency. The rules clarify that deposit insurance will exclusively cover the corporate accounts of issuers, leaving individual stablecoin holders without direct protection. A significant update to the proposal includes the integration of strict Anti-Money Laundering (AML) requirements within the regulatory framework. Furthermore, stablecoin issuers will now be classified as financial institutions, mandating their adherence to traditional banking compliance standards. The FDIC reiterated that extending insurance to retail holders would directly conflict with the current legislative text of the Act. These measures signal a shift toward rigorous oversight, aiming to integrate digital assets into the regulated financial system despite potential operational hurdles for issuers.