BlockBeats News, June 9th, according to PYMNTS report, the Federal Deposit Insurance Corporation (FDIC) has issued a notice of proposed rulemaking on the implementation of the GENIUS Act, proposing to clarify that a payment stablecoin itself is not considered a deposit for the purposes of FDIC insurance, and stablecoin holders do not enjoy FDIC deposit insurance coverage.

Under the proposal, when the reserve assets of a stablecoin are held in a bank, it will be treated as a corporate deposit of the stablecoin issuer and will be insured accordingly, rather than providing pass-through insurance to stablecoin holders. The FDIC believes that this arrangement is in line with the GENIUS Act's provision that payment stablecoins are not covered by FDIC deposit insurance.

Furthermore, various opinions have been raised regarding stablecoin interoperability, reporting standards, user incentive mechanisms, and reserve custody and redemption rules. Some banking institutions have called for a ban on stablecoin issuers attracting funds through interest, cashback, or rewards to prevent the migration of bank deposits to the stablecoin ecosystem. The FDIC proposal also requires issuers to maintain high-liquidity reserve assets and limits the percentage of reserve assets held by a single financial institution to no more than 40%, while strengthening requirements for asset segregation, custody controls, and redemption management.