FDIC Chair Says Stablecoins Including Passthrough Structures Do Not Qualify for Deposit Insurance

FDIC Chair Travis Hill said at the American Bankers Association summit that stablecoins, including passthrough arrangements, are not eligible for FDIC insurance protection. Widely used tokens such as USDC and USDT do not carry federal deposit insurance coverage. Under the GENIUS Act, which set the U.S. regulatory framework for stablecoins and requires issuers to maintain 1:1 reserves, holders are treated as unsecured creditors rather than insured bank depositors if a stablecoin issuer fails.