US FDIC to Unveil New Stablecoin Guidelines This Month
Travis Hill, chairman of the US Federal Deposit Insurance Corporation (FDIC), has announced that the agency will propose a new application framework for stablecoin issuers later this month, marking a significant step forward in the regulation of digital assets in the United States.
The FDIC’s move is part of its implementation of the Guaranteeing Equity and Transparency in the Issuance of Stablecoins (GENIUS) Act, which was signed into law by President Donald Trump earlier this year. The Act outlines how multiple federal and state agencies, including the FDIC, will oversee and license stablecoin issuers operating in the US.
Key Developments and Expectations
The FDIC’s proposed rule is expected to establish a framework for stablecoin issuers to apply for licenses and will be followed by supervisory rules on capital and liquidity standards early next year. Additionally, the agency is preparing guidance on tokenized deposits and the tokenization of bank assets.
According to Hill, the FDIC will be responsible for licensing and monitoring subsidiaries of insured depository institutions that issue payment stablecoins. The GENIUS Act requires the adoption of several regulations in the coming year, including the setting of capital requirements, liquidity standards, and reserve asset diversification standards for stablecoin issuers.
Collaboration and Guidance
The FDIC is considering the recommendations released in July by the President’s Working Group on Digital Asset Markets, which advised regulators to clarify or expand the permitted activities in which banks are allowed to participate, including the tokenization of assets and liabilities. The agency is also developing guidance to provide additional clarity regarding the regulatory status of tokenized deposits.
The Federal Reserve is also working on stablecoin rules, with Vice Chair for Supervision Michelle Bowman noting that the central bank is currently working with other banking regulators to develop capital, liquidity, and diversification standards for stablecoin issuers under the GENIUS Act.
After publishing the initial proposal, the FDIC will solicit and review public comments before finalizing the rule, a process that typically takes several months. Other agencies, such as the Treasury Department, have already advanced their own rulemaking processes under the GENIUS Act, including public consultations that concluded in November.
For more information on the US FDIC’s stablecoin guidelines and the GENIUS Act, visit https://crypto.news/us-fdic-set-to-unveil-its-first-genius-act-stablecoin-guidelines-this-month/
