Federal Deposit Insurance Corporation (FDIC) Studies If Stablecoins May Be Eligible For Its Insurance
According to Coindesk, the US Federal Deposit Insurance Corporation (FDIC) has paid attention to stablecoins. The federal agency is exploring the possibilities of insuring deposits in stablecoins. Discussions are preliminary and it is not yet clear whether any decisions will be made on this issue.
The agency is analyzing what pass-through FDIC insurance might look like for reserves held by stablecoin issuers in banks. The coverage will insure token holders against losses of up to $250,000 in the event of the bankruptcy of the bank holding the reserves. The FDIC is also planning to explore what traditional direct deposit insurance might look like for banks that plan to issue stablecoins.
The discussion comes amid a broader US debate about the potential regulation of stablecoins. The Wall Street Journal reported this week that the Biden administration will subject stablecoin issuers to banking rules. Circle, the issuer of USDC, the second largest stablecoin, said the Securities and Exchange Commission (SEC) sent an inquiry to the company in July.
Back to the list