Home
Cryptocurrency
Cryptocurrency News
FDIC Proposes to Regulate Stablecoin Issuers in the US Under the GENIUS Enactment

FDIC Proposes to Regulate Stablecoin Issuers in the US Under the GENIUS Enactment

US regulator moves to introduce stricter oversight for stablecoin issuers.

Written by Rahul Dhingra, Edited by David Delima | Updated: 8 April 2026 14:37 IST

FDIC Proposes to Regulate Stablecoin Issuers in the US Under the GENIUS Enactment

Photo Credit: Unsplash/CoinWire Japan

New proposal sets reserve, audit, and compliance standards

Click Here to Add Gadgets360 As A Trusted Source

Highlights

Stablecoins must be backed 1:1 with liquid assets
Large issuers to face mandatory annual audits
FDIC to oversee stablecoin activity under new law

The Federal Deposit Insurance Corporation in the US has proposed a new regulation where they want to enact a new set of rules that will control Stablecoin Issuing to investors, and is in line with the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. This law requires stablecoins to be fully backed by US dollars or similar liquid assets. In simple terms, every stablecoin must be backed 1:1 with real assets. If there are $1 billion worth of stablecoins in circulation, the issuer must hold $1 billion in actual reserves without any exceptions. This law will also set reserve, redemption, capital, risk management, and custody standards for stablecoin issuers and insured depository institutions under its supervision.

New Framework Seeks to Bring Clarity to Stablecoin Regulation

The legislation mandates annual audits for issuers with a market capitalisation of more than $50 billion and establish guidelines for foreign issuance. The FDIC plays a key role in maintaining stability in the US financial system, as it is an organisation that supervises more than 4,000 financial institutions and 2,700 banks. The GENIUS Act grants the FDIC the authority to oversee stablecoin issuance and activities when it was signed into law in July. Even though the act is scheduled to come into effect from January 18 onwards.

Today, our Board of Directors approved a proposed rule that would establish requirements under the GENIUS Act for FDIC-supervised stablecoin issuers.https://t.co/VAnMhwyGo5 pic.twitter.com/1A8sqGRlvk
— FDIC (@FDICgov) April 7, 2026

As traditional finance gets into crypto and crypto companies look for bank charters, Travis Hill, the head of the FDIC, pointed out that the sector has grown noticeably in the last few years.

"Over the past two years, we've seen tremendous progress in this area, including a rapid shift in the posture of the federal government; enactment of the GENIUS Act, which establishes a framework for the regulation of payment stablecoins; and substantial technological development by both banks and nonbanks," Hill further added that "as a result, development of stablecoin and tokenized deposit products continues to advance, and use cases continue to multiply."

Bitcoin Surges Above $71,000 as Ceasefire Lifts Crypto Market Sentiment

In February 2025, the FDIC again took matters in its own hands. Hill released several documents related to the supervision of crypto-related activities in the country. He further announced that the agency will review its previous approach towards US banks seeking to offer crypto services. During the US Senate hearing, Hill presented a 790-page document featuring letters from the US banking sector, urging the regulator to ease restrictions on experimentation with crypto-related activities and services.

Overall, at the moment, stablecoins operate in a gray area. Before this law, no clear rules mean no trust from institutions, regulators, and no certainty for users. These rules certainly change that. Stablecoins that are regulated, backed by real reserves, are often compared to money stored in a bank, in terms of safety. This could also open the door for banks, pension funds, and large institutions to use stablecoins with reduced legal risk.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

Comments

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: Cryptocurrency, Stablecoin, US Crypto Bill

Rahul Dhingra

Email Rahul Dhingra

Rahul Dhingra is a crypto writer at Gadgets 360, where he covers the exciting world of Cryptocurrency, Blockchain, Defi and Web3. Before joining Gadgets 360, he worked as a content specialist for a European-based Crypto Exchange. Rahul loves storytelling, not just through the written word but also through the visual medium. Beyond his professional life, Rahul is a sports fanatic. Whether it’s cricket or football, his passion for the game is contagious. More