Regulatory Pathway for Stablecoins Takes Shape at FDIC
Implementing the GENIUS Act, the Federal Deposit Insurance Corporation has proposed a new application framework for payment stablecoin issuance. The move advances the federal government’s approach to regulating the asset class.
The FDIC’s board approved a notice of proposed rulemaking, seeking public input on the process. The proposal would allow eligible institutions to seek approval to conduct stablecoin activities through a dedicated subsidiary.
As detailed by FDIC counsel Nicholas Simons, applications would need to cover the scope of business, the subsidiary’s control framework, and include an accounting firm engagement letter. This information is intended to provide the necessary oversight foundation.
Simons emphasized the dual goals of the proposal: ensuring safety and soundness while reducing applicant burden. The framework builds upon the GENIUS Act, which was signed into law by President Donald Trump and sets reserve, audit, and operational standards for both US and foreign issuers.
