FDIC Charts Course for Financial Institutions to Issue Stablecoins

In a continued rollout of the GENIUS Act, the FDIC has proposed a formal application rule for payment stablecoin issuance. This provides a regulated avenue for institutions to engage in the digital asset sector.

The FDIC board approved a notice of proposed rulemaking, initiating a public feedback period. The core of the proposal is an application process for institutions to create a subsidiary specifically for stablecoin activities.

FDIC counsel Nicholas Simons outlined the required application components. These include the proposed activity scope, the subsidiary’s governance structure, and a formal engagement with a registered public accounting firm.

The proposed rule aims to facilitate a secure and efficient review process for the FDIC. This regulatory development is grounded in the GENIUS Act, the federal law signed by President Donald Trump that establishes baseline requirements for stablecoin reserves, audits, and issuer conduct.