FDIC to Release Stablecoin Framework This Month

• FDIC will propose a stablecoin application framework later this month, with prudential requirements following in early 2026.
• The agency will establish capital, liquidity, and reserve diversification standards for supervised stablecoin issuers under GENIUS Act.

Before​‍​‌‍​‍‌​‍​‌‍​‍‌ the end of December, the Federal Deposit Insurance Corporation is set to reveal its regulatory framework for the implementation of the stablecoin law in the United States. In his testimony at the House Financial Services Committee on Tuesday, Acting Chair Travis Hill said the agency would send a proposal to the GENIUS Act for application rules. This step of the regulatory development is a major move in setting up a complete supervision regime for digital payment tokens that are backed by traditional assets such as the US ​‍​‌‍​‍‌​‍​‌‍​‍‌dollar.

Implementation Timeline and Regulatory Scope

Hill​‍​‌‍​‍‌​‍​‌‍​‍‌ corroborated that the FDIC is looking forward to publishing its proposed application framework by the end of the current month and a set of prudential requirements early next year. During his testimony, he mentioned that the agency will set up capital requirements, liquidity standards, and reserve asset diversification rules for stablecoin issuers under its supervision. In July, President Donald Trump signed the GENIUS Act into law, which, among other things, established oversight regimes for various federal regulators in the digital currency sector. 

In effect, the FDIC will be the entity to ensure the safety of stablecoin-issuing subsidiaries of institutions that are already under its vigilance. This is a move that goes beyond its conventional function of bank deposit insurance. It is a standard procedure that federal agencies to announce proposed regulations to receive public opinions before they finalize them. This process is usually quite time-consuming, taking several months to be completed ​‍​‌‍​‍‌​‍​‌‍​‍‌thoroughly.

The​‍​‌‍​‍‌​‍​‌‍​‍‌ Treasury Department, which is in charge of regulating non-bank stablecoin issuers, started the implementation of the GENIUS Act in August and has recently finished its second public comment period. Hill also disclosed that the FDIC is preparing guidance on tokenized deposits in response to the President’s Working Group on Digital Asset Markets’ recommendations. Federal Reserve Vice Chair Michelle Bowman said that the central bank is working with banking regulators to have the necessary stablecoin regulations under federal law. 

On Tuesday, the hearing will be marked by the testimony of leaders from the Office of the Comptroller of the Currency and the National Credit Union Administration. Both organizations will be on the frontline in executing detailed stablecoin supervision across the financial system, thereby assuring uniform regulatory standards for digital asset activities throughout the ​‍​‌‍​‍‌​‍​‌‍​‍‌country.

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