#fdic

➤ US banking trade groups are urging the FDIC to confirm in binding rule text that tokenized deposits qualify for deposit insurance. ➤ The move aims to make the FDIC's current proposal on tokenized deposits difficult to reverse, ensuring long-term regulatory clarity. ➤ The banking associations largely agree with the FDIC's proposed rules, seeking to solidify this agreement through public comment to withstand future challenges.

➤ Paradigm is challenging the FDIC's proposed stablecoin rules, arguing they exceed the GENIUS Act by restricting third-party rewards. ➤ The debate intensifies as Congress considers the CLARITY Act, which aims to protect activity-based stablecoin rewards offered by third-party firms. ➤ Paradigm also seeks changes regarding reserves, reporting requirements, and the treatment of tokenized assets, facing pressure to align with other agencies and legislative efforts.

➤ Six Republican senators are urging U.S. financial regulators (Fed, FDIC, OCC) to revise capital rules for banks holding digital assets, specifically Bitcoin. ➤ The senators argue the current 1,250% risk weight is a 'de facto ban' and advocate for a risk-based, technology-neutral framework, similar to tokenized securities. ➤ A potential rule change could significantly lower barriers for institutional Bitcoin adoption by reducing capital reserve requirements for banks.

➤ The FDIC has proposed new rules applying Bank Secrecy Act (BSA), AML, and sanctions compliance to payment stablecoin issuers, aligning them with bank-grade obligations. ➤ DTCC plans to integrate tokenized stocks, ETFs, and Treasuries onto the Stellar blockchain by 2027, following a SEC no-action letter. ➤ Several jurisdictions are advancing regulatory frameworks for digital assets, including New Hampshire's 'Blockchain Basics' bill, Italy's MiCA adoption by Banca Sella, and Georgia's launch of a Lari-pegged stablecoin with Tether.

➤ The FDIC has advanced a proposed rule requiring federally supervised stablecoin issuers to adhere to stricter anti-money-laundering (AML), counter-terrorist financing (CFT), and sanctions requirements. ➤ This rule aims to integrate stablecoins into the broader federal financial-crime enforcement system, treating them more like financial infrastructure and less like experimental tokens. ➤ The proposal, building on the GENIUS Act, seeks to enhance regulatory clarity and oversight for stablecoins, potentially attracting institutional participation while increasing operational costs for issuers.

➤ The FDIC has proposed new compliance standards for stablecoin issuers under the GENIUS Act, aligning them with Bank Secrecy Act and sanctions monitoring requirements. ➤ This proposal aims to strengthen Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) oversight for stablecoins and blockchain-based payment systems. ➤ The new framework is expected to increase institutional confidence and support broader stablecoin adoption, despite potential short-term cost increases for issuers.

➤ Consensys has raised concerns with the FDIC's proposed stablecoin framework, arguing it overextends restrictions outlined in the GENIUS Act. ➤ The company contends that self-custodial wallet providers should not be classified as intermediaries when users access DeFi protocols independently. ➤ Consensys also warned that automatic penalties for reserve or redemption shortfalls could negatively impact stablecoin holders during market stress.