Home News US FDIC may extend insurance coverage of $250K to deposits

US FDIC may extend insurance coverage of $250K to deposits

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Certain stablecoins may be eligible for the Federal Deposit Insurance Corporation (FDIC) insurance coverage in the amount of $250,000. Informed sources reported this to CoinDesk.

Thus, discussions are preliminary in nature, the terms of consideration of the issue have not been set. The agency is also exploring the option of direct deposit insurance in stablecoin issuing banks.

“FDIC integrates stable coins into the banking system. If the collateral is a reserve in the Fed, then the argument that it is a deposit may work. If in the form of US government bonds, then such an interpretation will be difficult,” one of the sources explained.

Stable Coins

Moreover, according to the media, the administration of US President Joe Biden is considering the option of presenting stable coin issuers with the same requirements that apply to banks. It is possible that they will need to comply with the requirements of a specially developed charter.

In September, it became known about the plans of the US Treasury to oblige issuers of stablecoins to ensure their free conversion into fiat. Earlier, the department discussed with the banking community and credit unions the risks and benefits of stable coins.

In July, a meeting of the President’s Working Group on Financial Markets was held. Its participants discussed the rapid growth of stablecoins, their use as a means of payment. As well as potential risks for end users, the financial system and national security.

The legal field

Gary Gensler called stablecoins “poker chips in casinos in the Wild West”. And the US Senate announced the need for full monetary support for digital assets.

Recall, according to the head of the Federal Reserve Jerome Powell, the agency does not intend to ban cryptocurrencies. But plans to include stablecoins in the legal field.

In August, the Centre Consortium issuing the USDC announced its intention to convert the token reserves into dollars and treasury bills.

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