The Federal Deposit Insurance Corp. has proposed new guidelines for banks and fintech firms issuing stablecoins, marking a significant step in integrating digital currencies into the traditional financial system. The guidelines, announced by FDIC Chair Travis Hill, establish requirements for reserve assets, redemptions, permissible activities and capital.

These rules follow the passage of the Genius Act last year, which mandates that stablecoin issuers register and maintain dollar-for-dollar reserves. The FDIC's framework builds on earlier measures, including a December framework for banks to issue payment stablecoins through subsidiaries. The Comptroller of the Currency also set its own guidelines in February.

The proposal includes 144 specific questions seeking public comment on key issues including permissible activities, capital requirements and the FDIC's approach to pass-through insurance. With three Republican board members set to vote on the proposal and two vacancies on the board, the guidelines could reshape how traditional banks and crypto firms interact in the digital asset space.