Regulators prepare coordinated approach to implementing the GENIUS Act
The Federal Deposit Insurance Corporatin plans to publish its first proposed framework for overseeing U.S. stablecoin issuers this month, marking a significant step in the rollout of the GENIUS Act. Acting FDIC Chair Travies Hill outlined the timeline in remarks prepared for a House Financial Services Committee hearing scheduled for Tuesday.
FDIC Lays Out Timeline
Hill said the agency has begun drafting rules that describe how the FDIC will apply the GENIUS Act to the institutions it supervises. A proposed framework is expected “later this month,” with additional prudential requirements for FDIC-regulated payment stablecoin issuers targeted for early next year.
Under the law, signed in July, the FDIC must establish capital, liquidity, and reserve-asset diversification standards for entities issuing stablecoins through insured banking subsidiaries. Hill emphasized that the process will follow the standard rulemaking track: a public proposal, a comment period, and revisions before any rule becomes final.
Coordination Across Federal Agencies
Other regulators are moving in parallel. The Treasury Department, responsible for non-bank issuers, recently closed a second comment window on its own proposal. Federal Reserve Vice Chair for Supervision Michelle Bowman is also expected to testify that the Fed is collaborating with banking regulators on requirements mandated by the act.
Bowman’s prepared remarks stress the need for clear rules on digital-asset activities, including which services banks may offer and how new use cases will be evaluated.
Guidance on Tokenized Deposits
Beyond stablecoins, Hill said the FDIC is drafting guidance on the regulatory treatment of tokenized deposits, informed by recommendations from the President’s Working Group. The goal, he said, is to outline when and how banks may engage in tokenization-related activities.
The hearing will also feature testimony from leaders of the Office of the Comptroller of the Currency and the National Credit Union Administration, both of which will play roles in implementing the new law.
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