FDIC draft rule clarifies stablecoin holders not eligible for deposit insurance

The U.S. Federal Deposit Insurance Corporation (FDIC) has specified in a draft rule for implementing the GENIUS Act that stablecoin holders are not covered by deposit insurance. According to PYMNTS, the draft clarifies that while stablecoin reserves may be considered corporate deposits of the issuer and thus eligible for FDIC coverage, pass-through deposit insurance is not provided to the stablecoin holders themselves. This measure aligns with the intent of the GENIUS Act, which states that payment stablecoins are not eligible for FDIC deposit insurance. The public comment period for the act's implementation, which the FDIC began in April, concludes today, June 9.