FDIC plans to clarify that payment type stablecoins do not enjoy deposit insurance protection

According to PYMNTS, the Federal Deposit Insurance Corporation (FDIC) is soliciting opinions on the implementation rules of the GENIUS Act and intends to clarify that payment stablecoins do not enjoy FDIC deposit insurance protection. The proposal requires that stablecoin reserve assets stored in banks be treated as corporate deposits of the issuer and be insured, but does not provide penetration insurance. The FDIC proposes to limit the proportion of reserve assets held by a single financial institution to no more than 40%, and to strengthen asset segregation, custody control, and redemption management. Some banking institutions suggest prohibiting issuers from attracting funds through interest or rewards to prevent bank deposits from flowing into the stablecoin system.