FDIC Clarifies Stablecoin Holders Not Covered by Deposit Insurance, Caps Reserve Concentration at 40% on June 9

According to PYMNTS, on June 9, the U.S. Federal Deposit Insurance Corporation (FDIC) closed its comment period on proposed rules for stablecoin issuers. The proposal clarifies that stablecoin holders are not eligible for FDIC deposit insurance coverage; while reserve assets held by issuers as corporate deposits are insured, this protection does not extend to stablecoin holders.

The rules require issuers to maintain highly liquid reserve assets and limit exposure to any single financial institution to no more than 40% of total reserves. The proposal also mandates custodial controls and asset segregation requirements.