FDIC Moves to Treat Stablecoins Like Banks Under New Rule

The Federal Deposit Insurance Corporation (FDIC) has moved to tighten oversight of stablecoins, signaling a clear shift in how these digital assets will operate in the United States.

On April 7, the FDIC approved a proposal to implement key provisions of the GENIUS Act. The rule would set standards for stablecoin issuers under its supervision, including requirements for reserves, redemptions, capital, and risk management.

In simple terms, stablecoins in the US are being pushed closer to the banking system. Issuers will need to hold safe assets such as cash or US Treasuries and prove they can redeem tokens reliably at a one-to-one value.

At the same time, the proposal formally brings banks into the stablecoin ecosystem. Insured banks would be allowed to hold reserves and provide custody services. This links stablecoins more directly to traditional financial infrastructure.

The FDIC also addressed how deposits backing stablecoins may be treated. If these funds meet the legal definition of a deposit, they could qualify for the same protections as regular bank deposits. This could increase trust but also expands regulatory control.

However, the rule is not final. The agency will accept public comments for 60 days before making changes.

Overall, the direction is clear. In the US, stablecoins are no longer being treated as a separate crypto product. They are operating under rules similar to those applied to banks.