Today, the National Community Reinvestment Coalition (NCRC) submitted a comment to the Federal Deposit Insurance Corporation (FDIC) on its notice of proposed rulemaking on implementing the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act) requirements and standards for FDIC-supervised stablecoin issuers and institutions.
NCRC urged the FDIC to address the risk of deposit flight and its impact on community investment and lending, ensure regulatory definitions are consistent in its final rule with the various other GENIUS Act implementing rules and any subsequent legislation to avoid consumer protection issues and seek input from other regulators and re-evaluate its technology neutral approach to deposit insurance because of the potential systemic and other risks associated with blockchain technology.
“Any final stablecoin rule issued by the FDIC must address what happens when money that supports local lending moves into stablecoin systems with fewer public safeguards,” said NCRC’s Policy Director Tara Flynn. “Families, small businesses and neighborhoods that already struggle to access affordable credit cannot afford to be left further behind.”
To read the full comment letter, visit: https://ncrc.org/ncrc-urges-fdic-to-address-risk-of-deposit-flight-in-genius-act-rulemaking/
