FDIC Plans Stablecoin Oversight Framework Proposal

The Federal Deposit Insurance Corporation announced plans Tuesday to propose a framework for stablecoin issuers to apply for federal oversight later this month, marking an initial step in implementing the GENIUS Act, a law signed by President Donald Trump in July that establishes coordinated regulation of dollar-backed stablecoins across U.S. agencies.

In prepared testimony delivered to the House Financial Services Committee, FDIC Acting Chair Travis Hill stated that the agency has begun drafting rules under the legislation. The first proposal, expected before the end of December, will outline the application process for payment stablecoin issuers, particularly subsidiaries of banks supervised by the FDIC. Hill noted that a second proposal addressing prudential requirements, including capital standards, liquidity rules, and reserve asset diversification, is slated for early next year. These measures aim to ensure issuers can handle redemptions during market stress while integrating stablecoins into the traditional banking system.

The GENIUS Act creates a national oversight structure that divides responsibilities among federal and state regulators. The FDIC's role focuses on...