Banks Can Soon Issue Stablecoins: FDIC Begins Rulemaking Under GENIUS Act

bitcoinistPublished on 2025-12-16Last updated on 2025-12-16

Abstract

The FDIC has announced a new framework allowing banks to apply for issuing payment stablecoins through subsidiaries under the GENIUS Act. Acting Chair Travis Hill stated the process is designed to ensure the safety and soundness of bank applications. Banks must submit detailed proposals, including descriptions of the stablecoin, subsidiary activities, financial information, ownership structure, and customer policies. The FDIC will notify applicants within 30 days if an application is substantially complete and must decide on approval within 120 days thereafter. This is the first step in implementing the stablecoin law, with further proposals on management standards and digital asset regulations expected.

The Federal Deposit Insurance Corporation (FDIC) has announced a new framework that outlines how banks can apply to issue payment stablecoins through subsidiaries as part of the implementation of the country’s stablecoin bill, the GENIUS Act.

FDIC’s First Move On GENIUS Act

In a statement, Acting Chair Travis Hill emphasized that the proposed process is tailored to allow the FDIC to thoroughly evaluate the safety and soundness of applications from banks seeking to enter the stablecoin market.

According to a summary from FDIC staff, banks wishing to issue payment stablecoins will need to submit detailed applications outlining various aspects of their proposed activities.

Each application must include a description of the intended payment stablecoin, along with a comprehensive overview of the subsidiary’s activities.

Additionally, institutions must provide financial information, details regarding the ownership and control structure of the subsidiary, and pertinent policies related to customer agreements, including provisions for custody. Applicants will need to submit an engagement letter from a registered public accounting firm.

30-Day Review Period For Stablecoin Applications

The FDIC aims to promptly review submissions, notifying stablecoin applicants within 30 days whether their application has been deemed substantially complete. Following that, the agency must make a decision on approval within 120 days from the time the application reaches this status.

“This proposed rule is the FDIC’s first action to implement the GENIUS Act,” stated Acting Chairman Travis Hill. He added that in the coming months, the agency plans to introduce proposals to establish the required management standards for subsidiaries of FDIC-supervised institutions that are approved to issue payment stablecoins.

The FDIC is also committed to providing comprehensive regulatory clarity regarding activities associated with digital assets and tokenized deposits. The plan will undergo a public consultation period before it can be finalized.

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