“When the FDIC steps in, crypto stops being chaos and starts becoming currency.”
The United States may be entering a new chapter of digital finance as the Federal Deposit Insurance Corporation (FDIC) prepares to establish its first framework for stablecoin regulation.
Acting Chair Travis Hill said that the agency will submit a proposal this month to start implementing the GENIUS Act – a landmark regulation approved earlier this year to oversee US stablecoins.
The FDIC will oversee stablecoin issuers operating under insured institutions as part of the act’s expanded monitoring authorities.
The FDIC will establish guidelines for reserve diversification, capital requirements, and liquidity protections under the GENIUS Act. These rules aim to protect users and strengthen trust in digital currencies.
Hill added that another proposal outlining prudential rules for stablecoin issuers will be released by the FDIC early next year. These ideas will be subject to public comment prior to final approval, much like other federal regulations.
Meanwhile, the Treasury Department and the Federal Reserve are collaborating with other regulators to establish the larger stablecoin framework. Two phases of public input on the Treasury’s own implementation plan have already been completed.
The FDIC is also working on recommendations for tokenised deposits, which are digital copies of real bank deposits, to help banks understand how to securely deploy asset tokenisation.
Hill said the agency is evaluating suggestions from the President’s Working Group on Digital Assets, which favours clearer guidelines for tokenisation.
You need to login in order to Like
Leave a comment