#FDICReleasesStablecoinGuidanceDraft

The FDIC Board has officially approved a proposed regulatory framework for payment stablecoins, marking a critical phase in the implementation of the **Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act**.
This 197-page draft sets the "rules of the road" for **Permitted Payment Stablecoin Issuers (PPSIs)** and insured banks, focusing on stability, transparency, and consumer protection.
### **Core Pillars of the Proposal:**
* **Liquidity & Reserves:** Issuers must maintain **1:1 backing** with high-quality liquid assets (U.S. dollars or equivalents), measured at fair market value.
* **The 48-Hour Rule:** A standard **two-business-day redemption timeline** is mandated to ensure stablecoins remain "as good as cash" for holders.
* **Insurance Clarity:** In a major move for transparency, the FDIC clarified that stablecoin reserves held at banks do **not** provide pass-through insurance to individual token holders. However, **tokenized deposits** remain fully insured under the FDI Act.
* **Yield Restrictions:** To prevent stablecoins from acting as unregulated investment vehicles, the proposal formalizes the GENIUS Act’s **prohibition on offering yield or interest** to holders.
### **Why It Matters:**
This follows the OCC’s February framework, signaling a unified federal push toward a regulated digital asset ecosystem. The FDIC is now seeking feedback on **144 specific questions** regarding capital standards and risk management.
**Status:** The public comment period is open for **60 days**. For financial institutions and fintechs, this is the window to shape the final standards of the U.S. stablecoin market.