U.S. Stablecoin Regulations Imminent: FDIC Finalizes GENIUS Act Guidelines

Washington just handed stablecoins their rulebook—and the crypto market's holding its breath.

The FDIC's final guidance for the GENIUS Act lands on desks this week. It's the regulatory green light the industry's been waiting for, setting the guardrails for dollar-pegged digital assets. No more operating in the shadows.

What This Means for Your Wallet

Forget the regulatory gray area. The new framework spells out who can issue stablecoins, what reserves they need, and how they must operate. It’s a legitimacy stamp that could trigger a flood of institutional capital into the space—finally bridging TradFi and DeFi.

The compliance clock is ticking for issuers. Those who adapt will thrive; those who don't will get left behind. It’s a classic move: regulate it, tax it, then watch Wall Street try to own it.

This isn't just paperwork—it's the foundation for the next phase of crypto. Clarity cuts through uncertainty, and that's the one thing markets hate more than bad news.

FDIC Nears First Draft of GENIUS Act Stablecoin Rules

The Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act), signed into law in July, created a multi-agency oversight system for payment stablecoins.

Under the law, only licensed issuers are allowed to offer stablecoins to U.S. users, with oversight divided between the FDIC, Federal Reserve, Treasury, and other regulators.

Hill said the FDIC has been developing application procedures and prudential standards that will apply to stablecoin-issuing subsidiaries of FDIC-supervised institutions.

These standards include capital requirements, liquidity expectations, and reserve asset diversification rules designed to ensure issuers can meet redemptions during periods of stress.

The agency also expects to release a separate proposal early next year detailing the financial and operational requirements stablecoin issuers must meet once approved.

Regulators Outline Broader Digital-Asset Responsibilities

Hill noted that the FDIC has taken a cautious but constructive approach toward banks exploring digital-asset services, ensuring activities remain “safe and sound.” Part of the agency’s ongoing work includes responding to recommendations from the President’s Working Group on Digital Asset Markets.

One area receiving particular attention is tokenized deposits, digital representations of bank deposits issued on blockchain networks. Hill confirmed that new guidance is being drafted to clarify how these instruments fit within existing banking rules, reflecting growing industry interest in tokenization for payments and settlement.

Other regulators are advancing their own responsibilities under the GENIUS Act. Federal Reserve Vice Chair for Supervision Michelle Bowman stated that the central bank is collaborating with banking agencies to establish capital, liquidity, and diversification standards for stablecoin issuers.

The U.S. Department of the Treasury has also played a central role in implementing the GENIUS Act.

In September, it released an Advance Notice of Proposed Rulemaking (ANPRM) seeking public feedback on its stablecoin oversight approach. The comment period, which ran through early November, invited input from industry participants, academics, and consumer groups.

The Treasury stated that the consultation aims to strike a balance between innovation and financial stability concerns. Public submissions will help build the final proposals, which will govern non-bank stablecoin issuers and related digital asset activities.

Related Reading: crypto Crackdown: House GOP Discovers 30 Firms Debanked In Operation Chokepoint 2.0

With the FDIC’s first proposal now nearing completion, federal agencies are entering the next phase of what is expected to be a multi-month rulemaking process. Once draft rules are released, they will undergo public review before final guidelines are adopted and phased in across the stablecoin market.

Cover image from ChatGPT, BTCUSD chart from Tradingview