FDIC to Outline GENIUS Act Stablecoin Rules in New Draft Proposal Before Month-End

Highlights:

• FDIC is planning a draft rule that will set clear steps for stablecoin issuers seeking federal oversight.
• The GENIUS Act stablecoin rules will guide agencies as they align oversight duties and shape early policy decisions.
• Regulators are working together to create capital and liquidity standards that support safer payment stablecoin activity.

The FDIC plans to release its first draft rules for stablecoin issuers before the end of the month. Travis Hill confirmed this during planned testimony to the House Financial Services Committee. He said the proposal will outline how issuers can apply for federal oversight under the new law. He noted that the agency aims to create a clear and consistent process for firms seeking supervision. The draft marks the start of a structured path for companies that want federal approval.

Hill also said the FDIC will introduce another proposal early next year. This proposal will focus on financial standards, including capital, liquidity, and reserve management. These standards will guide firms that plan to issue payment stablecoins under FDIC oversight. He said the agency wants firms to meet safe and predictable requirements. This push indicates a more organized attempt to control digital assets.

The proposed regulations will initiate a public comment period that will take several months. Regulators will collect feedback and refine the proposal after the comment window closes. The FDIC anticipates a gradual implementation of the final rules when they are completed. The strategy will allow issuers time to adapt to new compliance requirements.

Inter-Agency Coordination Shapes GENIUS Act Stablecoin Rules Timeline

Several agencies are now working on different parts of the stablecoin rules. The Treasury completed its second consultation period on stablecoin oversight last month. Officials reviewed public submissions and prepared their next steps. The agency oversees non-bank stablecoin issuers under the law. This shared duty requires close coordination with other regulators.

The Federal Reserve is also working on key elements of the GENIUS Act. Michelle Bowman said the Fed is developing capital, liquidity, and diversification standards for issuers. She said regulators need clear rules that support safe innovation. She also said banks need guidance on what digital asset activity they can pursue. Her remarks show that the Fed wants to reduce uncertainty around new financial products.

Other agencies will testify alongside the FDIC and the Fed. The OCC and the National Credit Union Administration will explain their roles in the oversight plan. Their duties include supervising the institutions they regulate and their related stablecoin activities. The CFTC also introduced a program that allows tokenized collateral to be used in derivatives markets. That program includes stablecoins and aligns with earlier recommendations from the President’s Working Group.

FDIC Develops Guidance for Tokenized Deposits

The FDIC is also working on guidance for tokenized deposits. Hill said this effort follows strong recommendations from the President’s Working Group. He noted that banks need clarity on how tokenized assets fit within their existing obligations. He also stated that tokenized deposits need transparent rules to minimize regulatory uncertainty. The purpose of these rules is to favour safe experimentation and not subject the banks to needless risk.

Regulators are still working on their wider digital asset policy agenda. They intend to provide direction to the institutions in a clearer manner as new products start picking up. This guidance will assist banks in knowing the kind of activities that are still allowed and those that require additional consideration. The FDIC sees this work as part of its long-term digital asset roadmap. The push shows how regulators now coordinate more closely on digital asset issues.

eToro Platform

Best Crypto Exchange

• Over 90 top cryptos to trade
• Regulated by top-tier entities
• User-friendly trading app
• 30+ million users

9.9

Visit eToro

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong.