FDIC to Implement US Stablecoin Rule Framework This Month, Acting Chair Says

The Federal Deposit Insurance Corporation is preparing to roll out a formal rule framework for US stablecoins later this month, according to acting chair Travis Hill.

Key Takeaways:

• The Federal Deposit Insurance Corporation will publish its first US stablecoin rule framework later this month.
• The GENIUS Act makes the FDIC the main regulator for bank-issued stablecoins, with other agencies overseeing the rest of the market.
• New capital, liquidity, and reserve rules will be introduced alongside guidance on tokenized deposits.

In prepared testimony for a House Financial Services Committee hearing, Hill said the agency has begun drafting rules to implement the law and expects to publish a proposal outlining how stablecoin issuers will apply for approval.

He added that a separate proposal setting out prudential standards for issuers overseen by the FDIC is planned for early next year.

GENIUS Act Puts FDIC in Charge of Bank-Issued Stablecoins

The GENIUS Act, signed into law in July by President Donald Trump, created a multi-agency oversight structure for dollar-backed stablecoins.

Under the legislation, the FDIC will supervise the stablecoin-issuing subsidiaries of the banks and firms it already regulates, while other agencies take responsibility for different corners of the market.

Hill said the FDIC’s job will go well beyond paperwork. The agency is tasked with defining capital requirements, liquidity rules and diversification standards for reserve assets, measures aimed at ensuring that issuers can meet redemptions even during market stress.

Like other federal regulators, the FDIC will publish its proposal for public comment before finalizing it, a process that often takes months as agencies sift through industry feedback and, if necessary, revise their approach.

The Treasury Department has already moved ahead on its side of the law.

Officials began their own GENIUS Act implementation work in August and recently closed a second public consultation on how non-bank issuers will be supervised, creating a parallel track of rulemaking that will shape the entire US stablecoin landscape.

Hill also revealed that the agency is working on guidance covering tokenized deposits, echoing recommendations published in July by the President’s Working Group on Digital Asset Markets.

The report urged regulators to clarify which blockchain-based activities are permissible for banks, including the issuance of digital representations of deposits.

The FDIC, he said, is preparing guidance to spell out how tokenized deposits should be treated under existing banking rules, an area that has drawn growing interest from lenders experimenting with blockchain infrastructure for payments and settlement.

Federal Reserve Joins the Effort

The Federal Reserve is also coordinating with other regulators on the stablecoin rulebook.

In separate remarks prepared for the same hearing, vice supervision chair Michelle Bowman said the central bank is working with peers to design capital and liquidity standards meant to anchor the sector to the traditional financial system.

Bowman emphasized the need for regulatory clarity not only on what banks are allowed to do with digital assets but also on how supervisors respond to new use cases as they emerge.

Alongside the FDIC and the Federal Reserve, representatives from the Office of the Comptroller of the Currency and the National Credit Union Administration are also due to testify, underlining how widely the new rules will reshape oversight of digital dollars in the US.