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The FDIC will send its first GENIUS Act rule proposal to the House Financial Services Committee by late December as Acting Chairman Travis Hill confirms new licensing and prudential standards for stablecoin issuers. Hill says the agency continues to shape application frameworks, capital rules, and liquidity requirements as federal regulators move to create a nationwide oversight structure for stablecoin payments.
The GENIUS Act became law in July after President Trump approved the measure. The law creates a federal system that governs stablecoin issuers. It defines the categories of issuers allowed to operate in the United States.
Permitted issuers must fall into one of three groups. They must either be state-qualified payment stablecoin issuers, federally qualified nonbank payment stablecoin issuers, or subsidiaries of insured depository institutions. These categories support a unified regulatory model for stablecoin operations.
Hill says the FDIC will supervise and license subsidiaries of FDIC-supervised institutions that plan to issue payment stablecoins. This includes oversight of capital rules, liquidity standards, and reserve diversification requirements. These rules form the backbone of future compliance expectations.
Hill states that the FDIC will issue a proposed rule for its application framework later this month. He adds that a second rule will cover prudential requirements early next year. This two-step rollout supports the law’s phased approach.
Throughout 2025, the FDIC works with banks that offer digital asset services. Hill says the agency follows a constructive approach as institutions adopt new technologies. Yet the FDIC also requires banks to maintain sound and secure operations during this transition.
Congress will also hear testimony from other bank and credit union authorities, including the Federal Reserve. Cryptocurrency often shapes these hearings due to its growing role in financial regulation. This trend continues as lawmakers examine the GENIUS Act’s rollout.
Hill confirms the FDIC is developing guidance on tokenized deposits. This guidance follows recommendations from the President’s Working Group on Digital Asset Markets. The group published its report in July and identified tokenization as a future banking activity.
The report calls for regulators to clarify authorized activities for banks as tokenization expands. Hill says the FDIC aims to give institutions more certainty about deposit tokenization. These rules may align with emerging stablecoin frameworks.
Federal Reserve Vice Chair for Supervision Michelle Bowman says the central bank is working on capital, liquidity, and diversification rules for stablecoin issuers. She says these rules follow the GENIUS Act requirements and support the wider supervisory mission. The Federal Reserve’s involvement signals deeper coordination between federal agencies.
As federal regulators build rules for stablecoins and tokenized deposits, one question now shapes the debate: Will these new frameworks create stronger stability across the digital asset sector?
The FDIC advances its GENIUS Act mandate by shaping new licensing rules, prudential standards, and tokenized deposit guidance for stablecoin issuers. These steps signal broader federal coordination as agencies refine digital asset oversight. Stakeholders should follow the upcoming proposals closely as regulatory expectations evolve.
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