The US FDIC plans to clarify that stablecoin holders will not be covered by deposit insurance.

CoinFeed reported on June 9th that, according to PYMNTS, the Federal Deposit Insurance Corporation (FDIC) closed its public comment period on proposed rules for stablecoin issuers on June 9th. The proposal clarifies that stablecoin holders are not entitled to deposit insurance: payments made in stablecoins themselves are not considered insured deposits; reserve assets are insured as corporate deposits of the stablecoin issuer, but stablecoin holders are not covered by transferable FDIC insurance. During the comment period, standardization organizations called for the adoption of a common reporting framework to support interoperability. Banks and fintech companies disagree on incentive measures: community banks advocate prohibiting stablecoin providers from attracting users through interest rates, cashback, etc., arguing that this would divert bank deposits and reduce local lending resources. The proposal also requires issuers to maintain highly liquid reserve assets, limit exposure to a single financial institution to no more than 40% of reserve assets, and establish custody controls and asset segregation requirements.