FDIC Proposes Framework for Banks to Issue Stablecoins
The banking regulator is soliciting public feedback for the next 60 days.
The Federal Deposit Insurance Corporation (FDIC) is soliciting public feedback on a proposal that will establish novel guidelines for depository institutions to issue payment stablecoins in compliance with the GENIUS Act.
What's the Scoop?
- New Rule Drop: The FDIC has released its first proposed guidelines outlining how FDIC-regulated banks can issue stablecoins in compliance with the GENIUS Act. The proposed rule change would establish a tailored application process for an FDIC-supervised institutions to obtain approval to issue payment stablecoins through a subsidiary.
- Application Overview: As per the GENIUS Act, the FDIC can only deny payment stablecoin applications if they promote "unsafe or unsound" banking behaviors. Stablecoins issuers will be required to maintain 1:1 reserves, and will apply to an "FDIC-insured State nonmember bank or an FDIC-insured State savings association."
- Comment Period: The FDIC will accepting comments on its stablecoin guideline proposal for the next 60 days. Comments can be submitted through a variety of formats, including via the FDIC's website.
Jack Inabinet
Jack Inabinet is a Senior Analyst with a passion for exploring the bleeding edge of crypto and finance. Prior to joining Bankless, Jack worked as an analyst at HAL Real Estate where he conducted market research and financial analysis for commercial real estate development and acquisition activities in the Seattle region. He graduated from the University of Washington’s Michael G. Foster School of Business.
