The Federal Deposit Insurance Corp. (FDIC) is advancing rule-making under the US GENIUS Act by proposing a framework for how regulated banks can apply to issue payment stablecoins, a crucial initial step in implementing the law’s stablecoin provisions.
In a 38-page document released on the FDIC’s website, the agency outlined proposed approval requirements for the issuance of payment stablecoins by subsidiaries of FDIC-supervised institutions.
As reported by Bloomberg here, the proposal will undergo a public consultation period before it advances to the next step in the rulemaking process.
According to the proposal, banks would submit applications to issue payment stablecoins via a subsidiary, with the FDIC evaluating both the subsidiary and its parent institution against criteria outlined in the GENIUS Act. These criteria include the ability to comply with stablecoin issuance standards, the institution’s financial condition, management quality, redemption policies, and other safety and soundness factors.
Once approved, the FDIC would act as the primary federal regulator overseeing the subsidiary’s payment stablecoin operations.
The FDIC is the US agency responsible for ensuring bank deposits and supervising member institutions. Recently, it has taken a proactive stance in determining how banks engage with digital assets, including a reevaluation of reputational risk in bank supervision. As reported by Cointelegraph in October, this change could affect how financial institutions engage with crypto-related businesses.
Related: US stablecoin rules divide global liquidity with Europe, CertiK warns
Washington’s historic embrace of stablecoins
The GENIUS Act — which stands for Guiding and Establishing National Innovation for US Stablecoins — passed the Senate in June and was signed into law by US President Donald Trump the following month.
This legislation establishes a comprehensive regulatory framework for payment stablecoins, necessitating that issuers maintain one-to-one reserve backing with US dollars or other approved high-quality liquid assets.
The GENIUS Act was largely welcomed by the cryptocurrency industry, with senior executives from prominent companies such as Coinbase, Circle, Robinhood, and Gemini in attendance at President Donald Trump’s signing of the bill.
Some industry players see the legislation as a means to bolster US dollar liquidity and enhance the dollar’s global influence through stablecoins, a sentiment echoed by US Treasury Secretary Scott Bessent.
The total value of stablecoins in circulation has surpassed $300 billion globally, with US dollar-pegged tokens driving this growth.
Related: Crypto Biz: Corporate stablecoin race intensifies with Citi, Western Union leading the way
