FDIC Stablecoin Rulemaking Highlights Fight Over Fees, Deposits and Custody

The FDIC's proposed GENIUS Act rule would set standards for stablecoin issuers and clarify that reserve deposits are not insured to holders on a pass-through basis. Stakeholder responses reveal a fight over who gets paid, who holds the money, and how much stays inside traditional banking. Consensys argued the agency should refine the rule's treatment of yield and distribution arrangements.