The Federal Deposit Insurance Corp.’s proposal outlines how banks could seek approval to issue payment stablecoins as US regulators move from legislation to rule-making.
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The Federal Deposit Insurance Corp. (FDIC) is moving forward with rule-making under the US GENIUS Act by proposing a framework for how regulated banks could apply to issue payment stablecoins, a key early step in implementing the law’s stablecoin provisions.
In a 38-page posted to the FDIC’s website, the agency detailed proposed approval requirements for the issuance of payment stablecoins by subsidiaries of FDIC-supervised institutions.
As Bloomberg , the proposal is subject to a public consultation period before advancing to the next stage of the rulemaking process.
Under the proposal, banks would apply to issue payment stablecoins through a subsidiary, with the FDIC assessing both the subsidiary and its parent institution against criteria set out in the . These include the ability to meet stablecoin issuance standards, the institution’s financial condition, management quality, redemption policies and other safety and soundness considerations.
Once approved, the FDIC would serve as the primary federal regulator overseeing the subsidiary’s payment stablecoin activities.
The FDIC is the US agency responsible for insuring bank deposits and supervising member institutions. In recent years, it has taken a more active role in shaping how banks engage with digital assets, including reconsidering the use of reputational risk in bank supervision. As , this shift could impact how financial institutions interact with crypto-related businesses.
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The GENIUS Act — short for Guiding and Establishing National Innovation for US Stablecoins — and was the following month.
The legislation establishes a comprehensive regulatory framework for payment stablecoins, including requirements that issuers maintain one-to-one reserve backing with US dollars or other approved high-quality liquid assets.
The GENIUS Act was widely welcomed by the cryptocurrency industry, with senior executives from major companies including Coinbase, Circle, Robinhood and Gemini attending President Donald Trump’s signing of the bill.
Some industry participants view the legislation as a tool to strengthen US dollar liquidity and extend the dollar’s global reach through stablecoins, a view .
The total value of stablecoins in circulation has climbed above $300 billion globally, driven almost entirely by US dollar-pegged tokens.
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