FDIC Comment Period Ends June 9 on GENIUS Act Rules, Proposal Says Stablecoins Are Not Insured Deposits

The U.S. Federal Deposit Insurance Corporation’s (FDIC) public comment period on partial implementation rules for the GENIUS Act ended on June 9, with the proposal stating that payment stablecoins are not FDIC-insured deposits and holders do not receive pass-through deposit insurance. According to Foresight News, the proposal clarifies that payment stablecoins themselves do not qualify as deposits covered by FDIC insurance. Industry feedback showed divisions within the payments sector. Banks and other traditional institutions opposed stablecoins offering incentives such as yields, rewards, or cash back, arguing these could draw deposits away from banks and weaken local lending capacity, and they called for an explicit ban on any form of compensation within stablecoin ecosystems. Separately, an International Organization for Standardization (ISO) technical committee recommended that the FDIC require machine-readable reporting formats and Legal Entity Identifiers (LEIs) to improve transparency, regulatory information sharing, and data quality.