FDIC outlines approval process as regulators shift from legislation to implementation
U.S. banks may soon be able to issue payment stablecoins after the Federal Deposit Insurance Corporation released a proposed framework to implement the GENIUS Act, marking a major step from legislation to rule-making. The proposal signals a clearer regulatory pathway for banks seeking to enter the stablecoin market under federal oversight.
FDIC Proposal Sets Rules for Bank-Issued Stablecoins
In a 38-page proposal, the FDIC detailed how FDIC supervised banks could apply to issue payment stablecoins through a regulated subsidiary. Applications would be evaluated based on criteria outlined in the GENIUS Act, including financial strength, management quality, reserve backing, redemption mechanisms, and safety and soundness controls.
Once approved, the FDIC would act as the primary federal regulator for the stablecoin-issuing subsidiary, overseeing ongoing compliance and risk management. The proposal will undergo a public consultation period before advancing further in the rulemaking process.
GENIUS Act Accelerates Stablecoin Adoption
The GENIUS Act, signed into law in July, established the first comprehensive U.S. framework for payment stablecoins, requiring one-to-one backing with U.S. dollars or approved liquid assets. The law has been widely viewed as a turning point for integrating stablecoins into the traditional banking system.
With global stablecoin circulation exceeding $300 billion, largely driven by dollar-pegged tokens, regulators and policymakers see bank-issued stablecoins as a way to strengthen dollar dominance, improve payment efficiency, and expand onchain financial infrastructure. The FDIC’s proposal positions U.S. banks to play a central role in that transition.
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