The Federal Deposit Insurance Corporation (FDIC) is drafting regulatory guidelines for banks and their fintech subsidiaries issuing stablecoins, according to FDIC Chairman Travis Hill. The proposed guidelines will address reserve assets, redemption mechanisms, permissible business activities, and capital requirements. The FDIC plans to seek public comments on these guidelines. This initiative is part of a collaborative effort with the Office of the Comptroller of the Currency (OCC) and the Federal Reserve following the passage of the GENIUS Act. The guidelines aim to clarify that tokenized deposits are considered deposits and seek market feedback on key issues such as profit distribution, capital constraints, and insurance arrangements.