TechFlow news: On March 12, according to CoinDesk, Travis Hill, Chairman of the U.S. Federal Deposit Insurance Corporation (FDIC), explicitly stated that stablecoin users will not be covered by any government deposit insurance following the implementation of the GENIUS Act—including so-called “pass-through deposit insurance” applied for by third-party financial institutions on their behalf.
Hill made these remarks at the American Bankers Association’s conference in Washington, D.C., stating that the FDIC plans to propose a rule clarifying that payment stablecoins subject to the GENIUS Act do not qualify for pass-through insurance. He noted that current pass-through insurance rules require that the identity and rights of end customers be ascertainable in the ordinary course of business—a condition generally absent in today’s large-scale stablecoin arrangements.
Additionally, Hill addressed tokenized deposits—another issue not covered by the GENIUS Act—stating that regardless of the underlying technology or accounting method used, tokenized deposits should be treated as deposits and afforded the same regulatory and insurance treatment as non-tokenized deposits.
