The Federal Deposit Insurance Corporation (FDIC) has unveiled a proposal outlining how regulated banks could issue payment stablecoins, marking a key step in implementing the US GENIUS Act.
The 38-page document, posted on the FDIC’s website, details the approval requirements for payment stablecoin issuance by subsidiaries of FDIC-supervised institutions.
The framework is now open for public consultation before moving to the next stage of rule-making, according to Bloomberg.
How the FDIC Plans to Oversee Stablecoins
Under the proposal, banks seeking to issue payment stablecoins must do so through a subsidiary.
The FDIC would assess both the subsidiary and the parent institution against criteria outlined in the GENIUS Act.
These criteria cover the ability to meet stablecoin issuance standards, financial condition, management quality, redemption policies, and other safety and soundness considerations.
Once approved, the FDIC would act as the primary federal regulator for the subsidiary’s stablecoin activities.
The agency, responsible for insuring deposits and supervising banks, has recently expanded its oversight role in digital assets.
This includes re-evaluating the use of reputational risk in supervising banks, a shift that could affect how financial institutions engage with crypto-related businesses.
Washington’s Stablecoin Framework
The GENIUS Act, or Guiding and Establishing National Innovation for US Stablecoins, passed the Senate in June and was signed into law by President Donald Trump in July.
It sets a regulatory framework for payment stablecoins, requiring issuers to maintain one-to-one reserves in US dollars or other approved liquid assets.
President Trump’s signing of the bill was attended by executives from Coinbase, Circle, Robinhood, and Gemini, reflecting strong industry support.
Some participants see the legislation as a way to strengthen US dollar liquidity and expand its global influence via stablecoins, a view shared by US Treasury Secretary Scott Bessent.
The global stablecoin market has now surpassed $300 billion, largely driven by US dollar-pegged tokens.
