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FDIC stablecoin issuer proposal comment period closed June 9

FDIC stablecoin issuer proposal comment period closed June 9

The draft says payment stablecoins are not insured deposits, denies holders pass-through FDIC coverage, and drew a Paradigm comment urging removal of limits on third-party stablecoin rewards.

Fact Check
All three claim components verified against primary sources. The Federal Register notice (2026-06974) confirms the June 9, 2026 comment close date and the proposed §330.11(a)(3) treatment denying pass-through insurance to stablecoin holders, with reserves insured only to the PPSI as a corporate depositor. Paradigm's own publication confirms its June 9, 2026 comment letter argued the FDIC lacks authority to prohibit third-party yield/reward payments, matching the crypto.news report.
Summary

The FDIC, the U.S. bank deposit insurer, closed the comment period on its proposed stablecoin issuer framework on June 9. The draft says payment stablecoins would not be treated as insured deposits, and that reserve assets could qualify as insured deposits only as the issuer's corporate deposits, not with pass-through FDIC coverage for token holders. It also sets requirements on liquidity, custody and segregation and caps exposure to any single institution at 40%. In a comment letter, crypto investment firm Paradigm urged the FDIC to remove provisions it said could restrict third-party companies from offering rewards tied to stablecoins, highlighting debate over how broadly the framework should affect non-issuer business models.

Terms & Concepts
  • payment stablecoins: Digital tokens designed for payments.
  • pass-through FDIC coverage: Deposit insurance extended to underlying customers rather than only the account holder.
  • reserve assets: Backing assets supporting stablecoin redemption.