The Federal Deposit Insurance Corporation (FDIC) plans to propose rules excluding payment stablecoins from pass-through insurance coverage, according to Chairman Travis Hill. Speaking at the American Bankers Association Washington Summit, Hill highlighted a regulatory divide between tokenized deposits, which will remain eligible for insurance, and payment stablecoins, which will not. This move is based on the GENIUS Act's prohibition against stablecoins being subject to federal deposit insurance. Pass-through insurance allows deposits held by third parties at banks to be insured as if deposited directly by end-customers. Without this coverage, stablecoin reserves would be treated as a single corporate account, capped at $250,000. Hill argued that granting pass-through insurance to stablecoins would contradict the GENIUS Act's intent. The FDIC plans to seek public comment on this proposal, offering the industry a chance to present alternative views.