FDIC Plans GENIUS Act Rules for Stablecoin Issuers

FDIC will propose rules for licensing and prudential standards for regulated stablecoin issuers.

Only state-approved issuers, federally regulated nonbanks, or IDI subsidiaries can issue payment stablecoins.

Regulators seek public input and coordinate with the Treasury and Federal Reserve on stablecoin oversight.

The U.S. stablecoin sector faces a pivotal moment as the FDIC prepares its first GENIUS Act rules proposal. On December 2, Travis Hill, acting Chairman of the FDIC Board of Directors, announced that the agency will submit its initial regulatory framework to the House Financial Services Committee by the end of December

This marks the first concrete step under the Guiding and Establishing National Innovation for U.S. Stablecoins Act, which President Trump signed into law in July. The law aims to create a federal framework allowing only licensed entities to issue payment stablecoins for U.S. users.

Hill’s statement explained that the FDIC’s rules will set application and prudential standards for regulated stablecoin issuers. Permitted entities must qualify as state-approved payment stablecoin issuers, federally regulated nonbank issuers, or subsidiaries of insured depository institutions (IDIs).

Hill emphasized that throughout 2025, the FDIC has promoted a constructive approach to banks offering digital asset services. However, the agency has maintained that these activities must be conducted safely and securely.

FDIC’s Regulatory Roadmap

According to Hill, the FDIC will handle licensing and supervision for IDI subsidiaries authorized to produce payment stablecoins. The GENIUS Act requires rulemaking in areas such as capital requirements, liquidity standards, and reserve asset diversification.

“The FDIC has begun work to promulgate rules to implement the GENIUS Act; 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 stated.

The agency is also considering recommendations from the President’s Working Group on Digital Asset Markets. Their July report encourages banks to engage in activities like tokenizing assets and liabilities. Hence, the FDIC is developing regulations to clarify the status of tokenized deposits

Additionally, the House Financial Services Committee hearing will contain testimony from other regulators, including the Federal Reserve. In her prepared remarks, Michelle, Vice Chair for Supervision at the Federal Reserve, stated that the central bank is developing capital, liquidity, and diversification guidelines for stablecoin issuers in accordance with the GENIUS Act.

Public Input and Treasury Oversight

Besides the FDIC, the Treasury has solicited public opinions through the Advance Notice of Proposed Rulemaking (ANPRM). Stakeholders were able to submit information and ideas on identifying illegal digital asset activities through the ANPRM, which expanded upon a Request for Comment issued on August 18

The deadline for comments was November 4, 2025. As a result, authorities can improve stablecoin regulations while taking into account input from the entire sector.

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