The FDIC is moving forward on stablecoin regulations. Acting Chair Travis Hill told the House Financial Services Committee that the agency plans to issue a proposed implementation framework for the GENIUS Act later this month.
“We expect to issue a proposed rule to establish our application framework later this month and a proposed rule to implement the GENIUS Act’s prudential requirements for FDIC-supervised payment stablecoin issuers early next year,” Hill said in his prepared testimony.
The GENIUS Act, which stands for Guiding and Establishing National Innovation for U.S. The Stablecoin Act became law back in July when President Trump signed it. It creates the first real federal regulatory framework for stablecoin issuers in the US.
Under this framework, the FDIC will supervise and license subsidiaries of FDIC-supervised banks that want to issue stablecoins. The agency’s also responsible for setting capital requirements, liquidity standards, and reserve asset diversification rules for these issuers.
Hill mentioned the FDIC’s working on guidance for tokenized deposits too, following recommendations from a Presidential Working Group report issued in July. This hearing included testimony from officials at the FDIC, Federal Reserve, Office of the Comptroller of the Currency, and National Credit Union Administration.
It’s a big step toward bringing stablecoins under proper federal oversight in the United States.
Conclusion
The FDIC’s imminent GENIUS Act framework represents a crucial milestone in establishing clear federal oversight for stablecoins, bringing regulatory certainty to an industry that’s operated in legal gray areas for years.
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