The U.S. Federal Deposit Insurance Corp. has introduced the initial formal rule proposal following the new legislation on stablecoin issuers. The board voted on Tuesday to initiate a 60-day public comment period regarding its process for managing applications from regulated banks that intend to issue stablecoins from their subsidiaries.
The agency, headed by Acting Chairman Travis Hill—who is also President Donald Trump’s pick for the permanent position—will collect comments and review them prior to releasing a final rule. The Tuesday proposal, which received unanimous approval from the three-member board, aims to create the procedures for application acceptance, review under a 120-day approval timeline, and an appeal process for applicants who are denied.
“According to the proposal, the FDIC plans to implement a streamlined application process to assess the safety and soundness of an applicant’s proposed activities, considering statutory factors while reducing the regulatory burden on applicants,” noted Hill, whose confirmation could occur as early as this week by the Senate.
The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act marks the first significant crypto legislation passed by Congress and outlines a detailed framework of regulators for companies seeking to issue stablecoins, which are essential for transactions in the digital asset landscape. For insured depository institutions, the FDIC serves as the designated regulator.
Hill mentioned that a more comprehensive rule will be forthcoming “in the months ahead,” establishing the FDIC’s capital, liquidity, and risk management standards for these issuers.
Under the suggested application process, interested institutions must present letters detailing their businesses, including financial data and their strategy for maintaining safe and stable issuance.
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