The Federal Deposit Insurance Corporation (FDIC) has decided to tighten regulations for stablecoins. This shows that these digital assets are now expected to operate differently in the USA.

On April 7, the FDIC approved a proposal to implement key parts of the GENIUS Act. The regulations set requirements for stablecoin issuers, who must have secure reserves, be able to handle withdrawals, have sufficient capital, and manage their risks.

Simply put, the FDIC is bringing stablecoins closer to the banking system. Those issuing stablecoins must hold safe assets such as cash or U.S. Treasury securities. They must be able to demonstrate that they can always redeem tokens for equivalent value, one for one.

At the same time, the proposal opens up for banks to enter the stablecoin world. Insured banks can then hold reserves and manage customers' stablecoins. Thus, stablecoins are linked even closer to the traditional financial system.

The FDIC also explains how the deposits that support stablecoins can be treated. If they meet the legal requirements for deposits, they can receive the same protection as regular bank deposits. This can increase trust, but also give more control to authorities.

The rule is not final. The FDIC will accept comments for 60 days before making further determinations.

It is clear where the development is heading. In the USA, authorities now treat stablecoins in a similar way to banks and no longer as a standalone cryptocurrency product.