"Permitted payment stablecoin issuers must hold reserves backing outstanding stablecoins on a 1:1 basis at all times, ensuring that the fair value or face value of those reserves equals or exceeds the consolidated par value of outstanding coins."
"Eligible reserve assets are limited to low-risk, highly liquid instruments, including U.S. coins and currency, balances at Federal Reserve Banks, and U.S. Treasury securities with a remaining maturity of 93 days or less."
"On redemption, the rule requires PPSIs to publicly disclose a redemption policy and generally fulfill requests within two business days, ensuring operational ability to quickly access and convert reserves to cash."
The FDIC's proposed rule mandates that permitted payment stablecoin issuers maintain 1:1 reserves in eligible assets and redeem stablecoins within two business days. The GENIUS Act prohibits non-permitted entities from issuing payment stablecoins and requires federal agencies to finalize regulations by July 18, 2026. Eligible reserve assets include U.S. currency, Federal Reserve balances, and certain Treasury securities. The proposal also limits counterparty exposure to 40% of total reserves and requires public disclosure of redemption policies for stablecoin issuers.
Read at news.bitcoin.com
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