Overview
- FDIC Chair Travis Hill said the agency plans to propose barring pass‑through insurance for GENIUS‑covered payment stablecoins, citing practical hurdles and legislative intent.
- Hill added that tokenized bank deposits likely qualify as deposits under existing law, preserving traditional insurance for those instruments.
- Senators Angela Alsobrooks and Thom Tillis are drafting a compromise to allow incentives tied to transactions while banning rewards on idle balances, with Tillis yet to commit and the markup schedule uncertain.
- Banking groups continue to press for tighter curbs, warning of large deposit outflows and releasing polling that favors caution, as crypto firms and the White House decry what they call anti‑competitive efforts.
- White House adviser Patrick Witt argues GENIUS‑compliant stablecoins can drive net new bank inflows from foreign demand, while prediction markets still assign meaningful odds to passage this year.