Regulators ramp up US stablecoin rules as GENIUS Act takes effect

• A second FDIC rule on prudential requirements will follow early next year.
• The FDIC will supervise bank subsidiaries issuing payment stablecoins.
• Guidance on tokenised deposits is under development.

US regulators are moving quickly to build the country’s new stablecoin supervision system, with federal agencies preparing detailed rulemaking as the GENIUS Act begins to shape policy.

The Federal Deposit Insurance Corporation is set to publish an application framework for payment stablecoin issuers later this month, marking one of the earliest steps in implementing the law signed by President Donald Trump earlier this year.

Alongside the FDIC, the Federal Reserve, and the Treasury Department are working on their own regulatory responsibilities, signalling a coordinated effort to bring stablecoins under a clearer, more structured oversight regime.

FDIC develops licensing framework for stablecoin issuers

The FDIC has confirmed through written testimony scheduled for delivery to the House Financial Services Committee on December 2 that it is close to releasing a proposed rule outlining how payment stablecoin issuers will apply for approval.

The agency began the process earlier this year as part of its duty to implement the GENIUS Act, and the first formal proposal is expected before the end of the month.

Another proposal focusing on prudential requirements for FDIC-supervised issuers is planned for early next year.

Once the application framework is published, the agency will gather public comments before moving toward a final rule, a phase that typically spans several months.

GENIUS Act expands oversight for bank-linked stablecoins

The GENIUS Act introduces a national structure that requires federal and state regulators to coordinate their supervision of stablecoin issuers.

Under the law, the FDIC will oversee and license subsidiaries of insured depository institutions that issue payment stablecoins.

The agency will also set out capital rules, liquidity expectations, and reserve diversification standards.

Much of this work will roll out over the coming year, as several rulemakings are needed to meet the obligations laid out in the legislation.

The FDIC is also consulting recommendations released in July by the President’s Working Group on Digital Asset Markets, which urged regulators to clarify digital asset activities allowed for banks, including asset and liability tokenisation.

Tokenised deposits included in regulatory review

In addition to its stablecoin responsibilities, the FDIC is preparing new guidance aimed at clarifying how tokenised deposits will be treated under federal regulation.

This area has gained attention as banks explore digital versions of traditional deposit products.

The forthcoming guidance is expected to help institutions understand which activities fall within supervisory boundaries and how they will be monitored.

Federal Reserve coordinates its own stablecoin standards

The Federal Reserve will join the FDIC at Tuesday’s House hearing, with Vice Chair for Supervision Michelle Bowman detailing the central bank’s work on stablecoin rules.

The Federal Reserve is coordinating with other banking regulators to craft capital, liquidity, and diversification standards required under the GENIUS Act.

The focus includes creating clarity for banks engaged in digital asset activities and providing regulatory feedback on new use cases as they emerge.

This joint push aims to ensure the banking system can support digital asset development while maintaining stability and compliance.

Other agencies are also advancing their obligations under the GENIUS Act.

The Treasury Department has already completed its public consultations, which concluded in November, and is developing its own rules.

These efforts will run in parallel with the FDIC and Federal Reserve processes, contributing to the broader national framework being built to govern stablecoins across the US.

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