FDIC Ends Comment Period on Stablecoin Rules Under GENIUS Act on June 9, Banks Oppose Yield Incentives

According to PYMNTS, the U.S. Federal Deposit Insurance Corporation (FDIC) ended its comment period on June 9 for implementation rules under the GENIUS Act. The proposal clarifies that payment stablecoins are not FDIC-insured deposits, and stablecoin holders do not receive pass-through deposit insurance protection. Industry feedback revealed sharp disagreement: traditional institutions like banks strongly opposed stablecoins offering yield, rewards, or cashback incentives, arguing these measures would divert deposits from banks and harm local lending capacity. Banks called for an explicit ban on compensation within the stablecoin ecosystem.
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