FDIC to Propose Stablecoin Application Rules This Month Under GENIUS Act

TLDR

• FDIC Acting Chair Travis Hill will testify that the agency expects to propose its stablecoin application framework before December ends
• A second proposed rule covering prudential requirements for FDIC-supervised stablecoin issuers is planned for early 2026
• The GENIUS Act, signed by President Trump in July, created oversight and licensing regimes across multiple federal regulators
• The FDIC is also developing guidance on tokenized deposits following recommendations from the President’s Working Group on Digital Asset Markets
• Federal Reserve Vice Chair Michelle Bowman confirmed the central bank is working with other banking regulators on capital, liquidity, and diversification regulations for stablecoin issuers

The US Federal Deposit Insurance Corporation will propose its framework for stablecoin applications before December ends. FDIC Acting Chair Travis Hill plans to deliver this announcement Tuesday during testimony to the House Financial Services Committee.

The agency has begun work on rules to implement the GENIUS Act. The first proposal will establish the application framework for stablecoin issuers seeking federal oversight. A second proposed rule covering prudential requirements for FDIC-supervised payment stablecoin issuers will follow in early 2026.

President Donald Trump signed the GENIUS Act into law in July. The legislation created oversight and licensing regimes across multiple federal regulators. Under the law, the FDIC will oversee stablecoin-issuing subsidiaries of banks it already supervises.

The FDIC insures deposits at thousands of US banks. Under the GENIUS Act, the agency must establish capital requirements, liquidity standards, and reserve asset diversification standards for stablecoin issuers.

Federal agencies must publish proposed rules for public feedback. The public comment period typically lasts several months. After reviewing input, regulators publish final versions of the rules.

The Treasury Department has also begun implementing the GENIUS Act. The agency started its implementation process in August. The Treasury completed a second public comment period on its proposal last month.

Additional Regulatory Developments

Hill confirmed the FDIC is developing guidance on tokenized deposits. This work follows recommendations from the President’s Working Group on Digital Asset Markets published in July. The report suggested clarifying or expanding permissible activities for banks, including asset and liability tokenization.

Federal Reserve Vice Chair for Supervision Michelle Bowman will also testify Tuesday. She stated the central bank is working with other banking regulators on stablecoin regulations. The Fed’s work includes developing capital, liquidity, and diversification requirements as mandated by the GENIUS Act.

Bowman said regulators need to provide clarity on digital asset treatment. This includes clarifying which activities banks can pursue. It also requires willingness to provide regulatory feedback on new use cases.

The House Financial Services Committee hearing will include other federal regulators. The Office of the Comptroller of the Currency and the National Credit Union Administration will present testimony. Both agencies have roles in implementing stablecoin regulations under the GENIUS Act.

The GENIUS Act divides regulatory responsibilities among federal and state entities. The Treasury will regulate some stablecoin issuers, including non-bank entities. The FDIC’s jurisdiction covers stablecoin-issuing subsidiaries of banks under its supervision.

The post FDIC to Propose Stablecoin Application Rules This Month Under GENIUS Act appeared first on CoinCentral.