FDIC Chairman: Stablecoins are not entitled to any form of deposit insurance under the GENIUS Act.

CoinFeed reported on March 12th, citing CoinDesk, that Travis Hill, Chairman of the Federal Deposit Insurance Corporation (FDIC), stated that under the GENIUS Act, stablecoin holders will not be eligible for any form of deposit insurance, including "transferred insurance" obtained by financial institutions on behalf of their clients. He pointed out that the GENIUS Act explicitly distinguishes stablecoins from bank deposits, which are guaranteed by the U.S. government up to $250,000. Hill explained that current transferred insurance rules require the ability to identify the end customer and their interests in day-to-day operations, a feature currently lacking in large stablecoin arrangements. Although stablecoins cannot obtain FDIC insurance, the law stipulates that they must maintain full reserves, protected by the issuer's own safeguards.