The Federal Deposit Insurance Corporation (FDIC) presented its proposal to regulate permitted payment stablecoin issuers (PPSI), in compliance with the GENIUS Act. The rule requires these entities, most of which are subsidiaries of supervised banking institutions, to maintain 1:1 reserves in high-liquidity, low-risk assets, such as short-term U.S. Treasury bills and deposits at the Federal Reserve Bank, ensuring immediate solvency for redemptions.
This move is an achievement in crypto market oversight, as it imposes minimum capital requirements of $5 million for new issuers and limits counterparty exposure to 40% of reserves. By prohibiting “pass-through” deposit insurance for individual stablecoin holders, the FDIC seeks to isolate systemic risk, forcing companies to demonstrate robust technological management, especially in the control of smart contracts and private keys.
The GENIUS Act will come into effect in January 2027; with it, the market will head toward an era of institutional transparency. Issuers must now adjust their operational structures to comply with daily audits and two-business-day redemption policies.
Source:https://goo.su/j2bhjz
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