U.S. Agencies Propose Strict New Stablecoin Regulations Under GENIUS Act

The Federal Deposit Insurance Corporation (FDIC) and the U.S. Department of the Treasury have introduced a comprehensive regulatory framework to implement the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, which President Donald Trump signed into law in July 2025. These measures, announced between April 7 and April 10, 2026, aim to integrate stablecoin issuers into a regulatory discipline similar to traditional banking.

The FDIC's proposal establishes standards for permitted payment stablecoin issuers, requiring 1:1 backing with liquid reserve assets, a $5 million minimum capital requirement for the first three years, and redemptions within two business days. FDIC Chair Travis Hill clarified that while tokenized deposits meeting legal definitions are covered, stablecoins themselves do not receive standard deposit insurance; instead, reserves are insured as corporate deposits to the issuer. The framework also prohibits yield-bearing stablecoins to prevent them from becoming unregulated savings vehicles.

Simultaneously, the Treasury's Financial Crimes Enforcement Network and the Office of Foreign Assets Control proposed rules treating issuers as financial institutions. This requires them to identify customers, file suspicious activity reports for transactions over $5,000, and maintain the technical ability to freeze or burn tokens to comply with lawful orders. Treasury Secretary Scott Bessent stated the measures protect the financial system from national security threats while allowing companies to innovate. Both agencies have opened 60-day public comment periods, with full operational implementation projected for 2027.