On April 7, 2026, the FDIC Board of Directors approved a notice of proposed rulemaking to implement the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act), establishing a regulatory framework for FDIC-supervised permitted payment stablecoin issuers (PPSIs).[7] The proposal follows similar rulemaking by the Office of the Comptroller of the Currency (OCC) issued in February 2026, with both agencies aligning on certain provisions while diverging substantially on reserve requirements.[3][9]
Who's Involved
The regulatory action involves the FDIC and OCC as primary regulators implementing the GENIUS Act, which was enacted into law in 2025.[9] The framework applies to payment stablecoin issuers like PayPal (which issues PYUSD), Coinbase, and custodians like Anchorage Digital. The legislation itself represents Congressional action to create a national regulatory framework for stablecoins.[1][7]
Key Provisions and Divergence
Both agencies prohibit stablecoin issuers from paying interest or yield directly to holders, or indirectly through affiliates and third parties—a provision both the FDIC and OCC interpreted nearly identically.[3][9] However, the agencies "diverge quite substantially" on reserve composition and diversification requirements.[3] The FDIC proposal mandates that PPSIs maintain reserves that fully back outstanding stablecoins at a 1:1 ratio using specified reserve asset types, with the FDIC having discretion over enforcement if reserves fall below this threshold.[1] The proposal also clarifies that deposits held as reserves backing payment stablecoins would not be eligible for pass-through deposit insurance.[5][9]
Why It's Newsworthy
The GENIUS Act represents the first comprehensive federal framework for payment stablecoins, addressing a regulatory gap as stablecoin usage has grown. The divergence between FDIC and OCC approaches on reserve requirements signals potential implementation challenges and suggests regulators are still calibrating their oversight approach to balance innovation with financial stability protections.[3] Public comment on the FDIC proposal runs for 60 days after Federal Register publication.[7]