The U.S. government has just issued the first set of official banking regulatory rules for stablecoins.

Today, the Federal Deposit Insurance Corporation (FDIC) has approved a comprehensive regulatory framework for stablecoin issuers under the “GENIUS Act.” The specifics are as follows:
1. Each stablecoin must be backed 1:1 by real assets. If there are $1 billion worth of stablecoins in circulation, the issuer must hold $1 billion in actual reserves of equivalent value, with no exceptions.
2. Each stablecoin must be redeemable at face value at any time. If you hold a $100 stablecoin, you can redeem it for $100 at any time.
Reserve assets may not be rehypothecated or reused. These reserves must be stored fully isolated and cannot be used for any other financial activities.
3. Stablecoin issuers may not pay interest or yields merely because users hold stablecoins. This will directly affect the currently available yield-bearing stablecoin products in the market.
4. If, within 24 hours, redemption requests exceed 10% of all circulating stablecoins, a “major redemption event” will be triggered, and immediate response measures must be taken.
5. Stablecoin issuers must meet bank-like capital requirements and risk management standards. Quarterly reports are required, and the audit reports must be signed by the CEO. These rules also apply to banks that hold or manage stablecoins for customers.
Important note: FDIC insurance covers reserve deposits held by the issuer at the bank level, not individual stablecoin holders.
Stablecoins are currently in a “gray area.” A lack of clear rules means institutions do not trust them, regulators do not trust them, and users lack certainty as well. And these new rules change that: compliant stablecoins backed by real reserves and covered by FDIC insurance will be nearly as safe as bank deposits.
This will open the door for banks, pension funds, and large institutions to use stablecoins without legal risk. A regulated stablecoin market is the foundation for further growth across the entire crypto industry.