The U.S. federal agency has unveiled the regulatory framework that will allow banks to seek approval to issue payment stablecoins.
According to Bloomberg, the Federal Deposit Insurance Corporation (FDIC) is moving forward with drafting the rules outlined in the U.S. GENIUS Act, proposing a structured system through which regulated banks can apply to issue payment stablecoins.
In a 38-page document published on its website, the FDIC outlined the proposed requirements for approving the issuance of payment stablecoins through subsidiaries of institutions under its supervision.
The proposal is subject to a public consultation period before moving to the next stage of the regulatory process.
How the approval process will work
Under the proposal, banks would need to apply to issue payment stablecoins through a controlled subsidiary. The FDIC would evaluate both the subsidiary and the parent institution based on criteria established by the GENIUS Act. These include the ability to comply with stablecoin issuance standards, the institution’s financial strength, management quality, redemption policies, and other safety and stability considerations.
Once approval is granted, the FDIC would serve as the primary federal regulator overseeing the subsidiary’s payment stablecoin activities.
The FDIC is the U.S. agency responsible for insuring bank deposits and supervising member institutions. In recent years, it has taken a more active role in defining how banks interact with digital assets, including reconsidering the use of reputational risk in banking supervision.
