- The FDIC plans to propose a rule for implementing the GENIUS Act’s stablecoin framework later this month.
- The agency will also propose rules early next year focused on prudential standards for banks issuing payment stablecoins.
- The GENIUS Act assigns the FDIC regulatory oversight of stablecoin-issuing subsidiaries of FDIC-insured institutions.
- The Federal Reserve is collaborating with banking regulators to develop capital, liquidity, and diversification standards for stablecoin issuers.
- The FDIC is working on guidance regarding tokenized deposits following recommendations from the President’s Working Group on Digital Asset Markets.
The U.S. Federal Deposit Insurance Corporation (FDIC) will introduce a proposed rule later this month to implement stablecoin regulations outlined in the GENIUS Act. This framework aims to regulate stablecoin issuance within institutions supervised by the FDIC, according to testimony prepared by acting chair Travis Hill for the House Financial Services Committee on Tuesday. The FDIC also expects to issue a separate proposed rule early next year addressing prudential requirements for payment stablecoin issuers under its supervision, as stated in the testimony.
Signed into law in July by former President Donald Trump, the GENIUS Act sets regulatory standards for stablecoin issuers across multiple agencies. The FDIC’s responsibilities include establishing capital requirements, liquidity standards, and rules for reserve asset diversification for stablecoin-issuing subsidiaries of insured institutions. The agency will collect public feedback on its proposed rules before finalizing them, a process that typically takes several months.
In addition, Hill mentioned that the FDIC is developing guidance on the regulatory status of tokenized deposits. This initiative responds to recommendations made in July by the President’s Working Group on Digital Asset Markets, which suggested expanding permissible banking activities to include asset and liability tokenization.
The Federal Reserve is also engaged in creating stablecoin regulations. Vice Chair for Supervision Michelle Bowman will testify on Tuesday that the Fed is collaborating with other banking regulators to develop capital, liquidity, and diversification standards as mandated by the GENIUS Act. She emphasized the need for regulatory clarity around digital asset activities to support responsible growth within the banking system, according to her prepared remarks.
Furthermore, the House Financial Services Committee’s hearing will feature representatives from the Office of the Comptroller of the Currency and the National Credit Union Administration. Both agencies will participate in implementing the stablecoin regulatory framework. The U.S. Treasury has already commenced its portion of GENIUS Act implementation, focusing on regulating non-bank stablecoin issuers, and completed a second public comment period in November.
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