FDIC Lays Groundwork For Bank-issued Stablecoins Under GENIUS Act

The Federal Deposit Insurance Corporation has taken a key step toward enabling U.S. banks to issue payment stablecoins by proposing new rules under the GENIUS Act. The framework outlines how FDIC-supervised banks could apply to issue stablecoins through regulated subsidiaries.

Under the proposal, the FDIC would assess both the subsidiary and parent bank on factors including financial health, management quality, redemption mechanisms, and compliance with stablecoin issuance standards. Once approved, the FDIC would serve as the primary federal regulator for the stablecoin activity.

The proposal is now open for public consultation before advancing in the rulemaking process. In recent years, the FDIC has become more actively involved in shaping banks’ interaction with digital assets, including reevaluating reputational risk standards.

The move signals growing regulatory clarity around stablecoins and could pave the way for broader participation by traditional banks in blockchain-based payment systems.

You need to login in order to Like