FDIC to Propose GENIUS Act Stablecoin Framework This Month
The US Federal Deposit Insurance Corporation plans to introduce a proposed framework for implementing stablecoin legislation later this month, according to acting chair Travis Hill, who outlined the timeline in prepared testimony for delivery on Tuesday to the House Financial Services Committee.
Hill said the FDIC has begun work to implement the GENIUS Act and expects to publish a proposed rule establishing its application framework later this month. He added that a proposed rule to implement the GENIUS Act’s prudential standards for FDIC‑supervised payment stablecoin issuers is expected early next year.
President Donald Trump signed the GENIUS Act in July, creating oversight and licensing structures across multiple regulators. Under the law, the FDIC is responsible for supervising stablecoin‑issuing subsidiaries of institutions it oversees.
The FDIC, which insures deposits at thousands of banks, is tasked by the GENIUS Act with setting “capital requirements, liquidity standards, and reserve asset diversification standards” for stablecoin issuers, Hill said.
Travis Hill appearing before the Senate Banking Committee for his nomination hearing to be FDIC chair. Source: Senate Banking Committee
Federal agencies typically publish proposed rules for public comment, review and respond to feedback as needed, and then issue final rules. The process can take several months.
The Treasury Department, which will also regulate certain stablecoin issuers, including non‑banks, began implementing the GENIUS Act in August and concluded a second public comment period on its implementation proposal last month.
FDIC drafting guidance on tokenized deposits
Hill said the FDIC has considered recommendations released in July by the President’s Working Group on Digital Asset Markets.
“The report recommends clarifying or expanding permissible activities in which banks may engage, including the tokenization of assets and liabilities,” Hill said, adding, “We are also currently developing guidance to provide additional clarity with respect to the regulatory status of tokenized deposits.”
Federal Reserve coordinating on stablecoin regulations
Federal Reserve Vice Chair for Supervision Michelle Bowman will also testify on Tuesday that the central bank is working with other banking regulators to develop capital, liquidity, and diversification regulations for stablecoin issuers as required by the GENIUS Act.
Bowman added in her prepared remarks that regulators need to clarify the treatment of digital assets so the banking system is positioned to support digital asset activities, including clarity on which activities are permissible and a readiness to provide supervisory feedback on proposed new use cases.
The hearing will also include remarks from the heads of the Office of the Comptroller of the Currency and the National Credit Union Administration, both of which will play roles in implementing stablecoin regulations.
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