The US FDIC has proposed establishing rules for a stablecoin application framework to advance the implementation of the GENIUS Act.
PANews reported on December 17th that, according to The Block, the Federal Deposit Insurance Corporation (FDIC) is moving forward with implementation of parts of the stablecoin bill that will become law this summer. On Tuesday, the FDIC Board of Directors approved a proposed rulemaking notice that sets out an application process for agencies to issue payment stablecoins through subsidiaries. The agency is currently soliciting public comments on the proposed rule. At the Board meeting, FDIC legal counsel Nicholas Simons stated that applications must clearly define the scope of the proposed activities, provide a description of the "subsidiary ownership and control structure," and include "an engagement letter with a registered public accountant firm." Simons stated, "In summary, the proposed rule will enable the FDIC to assess the security and robustness of proposed payment stablecoin activities while minimizing the regulatory burden on applicants."
This summer, US President Trump signed the GENIUS Act, creating a federal regulatory framework for stablecoins. Earlier this month, FDIC Acting Chairman Travis Hill informed lawmakers that the agency plans to release an implementation framework for the GENIUS Act in the coming weeks. On Tuesday, he also stated that the agency plans to release a proposed rule in the coming months out outlining capital, liquidity, and risk management requirements for approved subsidiary stablecoin issuers.
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