"The FDIC outlined requirements for 'permitted payment stablecoin issuers' (PPSIs), which are expected to operate as subsidiaries of FDIC-supervised institutions. The framework sets standards for reserves, redemption practices, capital, liquidity, cybersecurity, and risk management."
"Issuers would be required to maintain full backing of stablecoins on a 1:1 basis with eligible reserve assets. These reserves must be monitored daily and held separately from other business activities."
"Redemption standards form a central component of the rule. Issuers would be required to publish clear redemption policies and generally process redemption requests within two business days."
The FDIC has introduced a regulatory framework for stablecoin issuers under the GENIUS Act, requiring them to operate as subsidiaries of FDIC-supervised institutions. The framework mandates standards for reserves, redemption practices, capital, liquidity, cybersecurity, and risk management. Issuers must maintain a 1:1 backing of stablecoins with eligible reserve assets, which include U.S. currency and Treasury securities. The proposal also includes concentration limits on reserves and requires clear redemption policies, with specific protocols for large withdrawals. A 60-day public comment period is now open.
Read at Bitcoin Magazine
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