The U.S. Federal Deposit Insurance Corporation (FDIC) has released a proposed rule to regulate stablecoin issuance by banks and their fintech subsidiaries, marking a significant step in implementing the 2025 GENIUS Act. The proposal, published in the Federal Register, outlines specific requirements for "Qualified Payment Stablecoin Issuers" (PPSIs) under FDIC regulation, with a public comment period open until June 9, 2026. Key provisions include maintaining a 1:1 reserve ratio for stablecoins, ensuring liquidity and convertibility of reserves, and prohibiting interest payments to stablecoin holders. The draft also mandates public disclosure of redemption policies and reserve compositions, with third-party verification and executive accountability. These rules aim to prevent risks associated with capital, liquidity, and misleading sales practices, while clarifying that stablecoins are not covered by FDIC deposit insurance. The proposed regulations are expected to impact 5 to 30 FDIC-supervised institutions initially, as they seek approval to issue stablecoins. This move is part of a broader federal effort to establish a comprehensive regulatory framework for stablecoins, alongside parallel rules from the OCC and Treasury. The new guidelines are likely to favor bank-affiliated issuers with strong compliance capabilities, reshaping the competitive landscape of the U.S. stablecoin market.