- FDIC’s Acting Chair Travis Hill announced that the agency plans to issue its first regulatory proposal under the GENIUS Act by the end of December
- These rules will outline how companies that issue stablecoins can apply to be supervised by the government
- FDIC plans to release a second set of rules, likely in early 2026, that will define the financial safety requirements for the stablecoin companies it oversees
The Federal Deposit Insurance Corporation (FDIC) is moving to operationalize the GENIUS Act, with Acting Chair Travis Hill confirming plans to release the first federal regulatory framework for stablecoin issuers under the GENIUS Act before the end of December.
Phase 1: The Federal Application
According to Hill, the December proposal will focus on the administrative front door, outlining the specific process for companies to apply for status as a Permitted Payment Stablecoin Issuer, PPSI.
Phase 2: Capital & ‘Tokenized’ Distinctions
FDIC plans to release a second set of rules, likely in early 2026, that will define the financial safety requirements for the stablecoin companies it oversees. It will cover things like how much capital they must hold, the quality of their reserves, and their risk controls.
In parallel, new guidance on tokenized deposits (for example, bank-issued digital deposits, which are distinct from stablecoins) is being developed. Under GENIUS, tokenized deposits are treated differently from payment stablecoins.
As a reminder, the GENIUS Act, signed into law in July 2025, establishes the first federal regulatory framework for payment stablecoins in the US. This includes requirements for 1:1 reserve backing with safe, liquid assets (cash, short-term Treasuries, and similar), public disclosure of reserves, and licensing of issuers.
With the FDIC’s proposal, for the first time, companies that issue stablecoins in the US will have a specific legal process to get a federal license, which will bring stablecoin issuers under official government supervision as “permitted payment stablecoin issuers.”
Other regulators are also getting involved. The Federal Reserve has stated it is working with other government agencies to set financial safety rules, covering how much money stablecoin companies must hold and how they invest it, as required by the GENIUS Act.
The impact on the stablecoin industry
Before the GENIUS Act and the new FDIC rules, the US stablecoin industry had no clear federal regulations. Instead, it faced a confusing mix of state rules with little national oversight, which led to a lack of trust, constant arguments about whether companies had enough real money in reserve, and fears that the whole sector was a financial risk.
With this new framework, the US is effectively bringing stablecoins into the banking world, requiring them to meet similar reserve, transparency, and oversight standards as banks. This makes the entire system less risky, builds trust with regulators and big investors, and could help stablecoins become more widely used.
Related: Sony Targets 2026 Stablecoin Launch to Power PlayStation Payments
It’s worth noting that for crypto businesses like exchanges and DeFi apps, these new rules mean they’ll have to change how they operate. Businesses dealing with stablecoins will need to focus on legal compliance, regular audits, getting proper licenses, and managing their reserves carefully.
The upside is that those who meet the standards early could gain a major advantage, as being one of the first “government-approved” stablecoins would make them stand out in the market.
Related: China’s PBOC Reaffirms Crackdown on Crypto Trading and Illegal Stablecoin Usage
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Source: https://coinedition.com/fdic-sets-year-end-target-for-federal-stablecoin-licensing-rules/
