FDIC Chair Travis Hill said stablecoins under the GENIUS Act are legally distinct from bank deposits and would not receive deposit insurance, while tokenized deposits should receive the same coverage as ordinary deposits.
FDIC Chair Travis Hill said stablecoin holders would not receive any form of deposit insurance under the GENIUS Act, distinguishing them from bank deposits insured up to $250,000. He said stablecoins are legally separate from deposits, while tokenized deposits should be treated as deposits and receive the same insurance coverage and regulatory treatment as non-tokenized bank deposits. The remarks reinforce the FDIC’s policy distinction between payment stablecoins and insured bank liabilities.