Travis Hill Unveils Regulatory Blueprint for Stablecoins - The Rules Are Finally Here
The waiting game is over. Federal regulators are finally putting pen to paper on the rules that will govern the multi-trillion dollar stablecoin market.
Hill's Framework: What You Need to Know
The proposed plan isn't just a suggestion—it's a detailed roadmap. It carves out clear roles for federal and state authorities, aiming to replace regulatory gray areas with black-and-white rules. The goal? To provide the legal certainty that major financial institutions have been demanding before diving in headfirst.
Why This Changes Everything for Crypto
For years, stablecoins operated in a regulatory limbo. This framework cuts through the ambiguity. It outlines specific requirements for reserves, disclosures, and operational risk—directly addressing the core concerns that followed high-profile collapses. Think of it as building guardrails on the crypto highway.
The Institutional Green Light
This isn't niche news. Clear rules act as a siren call for Wall Street. With a compliant path forward, expect traditional finance giants to accelerate their stablecoin projects, bypassing earlier hesitation. The era of 'wait and see' is concluding, fast.
A Necessary Evil or a Foundation for Growth?
Let's be cynical: regulation often feels like a tax on innovation, dreamed up by people who still think 'blockchain' is a type of bicycle lock. But here's the twist—this specific set of rules might be the very thing that legitimizes crypto in the eyes of the old-money guard. The market craves stability more than it fears a few pieces of paper from Washington. The race to build the future of money just got its official rulebook.
Travis Hill details regulatory plans for stablecoins
According to Hill, throughout 2025, the FDIC has taken a constructive approach with respect to banks that offer goods and services related to digital assets. At the same time, the agency has maintained its expectations that such activities are conducted securely and soundly.
Hill stated that the FDIC will be liable for Licensing and overseeing subsidiaries of FDIC-supervised IDIs authorized to produce payment stablecoins. He mentioned that the GENIUS Act will require several rulemakings, including the establishment of capital requirements, liquidity standards, and reserve asset diversification standards.
“The FDIC has begun work to promulgate rules to implement the GENIUS Act; we expect to issue a proposed rule to establish our application framework later this month and a proposed rule to implement the GENIUS Act’s prudential requirements for FDIC-supervised payment stablecoin issuers early next year.”
Travis Hill, Acting Chairman of the FDIC Board of Directors.
Hill further stated that the FDIC is taking into account the suggestions of the President’s Working Group on Digital Asset Markets, which released its report in July, as well as its work under the GENIUS Act.
The President’s Working Group report recommends clarifying or increasing authorized activities, in which Tokenization of assets and liabilities is one activity that banks may participate in. He stated that the FDIC is currently developing regulations to provide more clarity regarding the regulatory status of tokenized deposits.
Notably, the House hearing on Tuesday will also receive testimony from other bank and credit union authorities, including the Federal Reserve. Over the last few years, whenever congressional panels have financial regulators in front of them, cryptocurrency has been a frequent topic of conversation.
Michelle, the Federal Reserve Vice Chair for Supervision, stated in her prepared testimony that the central bank was attempting “to develop capital, liquidity, and diversification regulations for stablecoin issuers as required by the GENIUS Act.”
Treasury seeks public input on GENIUS Act
Other agencies, such as the Department of the Treasury, have also been working on their portions under the GENIUS Act.
On September 18, the U.S. Department of the Treasury released an Advance Notice of Proposed Rulemaking (ANPRM). The Department of the Treasury sought public feedback regarding the Treasury’s implementation of the GENIUS Act.
According to the Treasury report, the GENIUS Act mandates the Treasury to adopt laws that stimulate innovation in payment stablecoins while providing an appropriately tailored regime to address financial stability problems.
Cryptopolitan reported that the Treasury requested that the public submit comments, including data and other information that the Treasury could find helpful. Factually, the ANPRM provides the public with an opportunity to contribute to the implementation of the GENIUS Act, even if it does not impose any new requirements.
According to the Treasury, the ANPRM accepts comments and views from a wide variety of stakeholders.
The Treasury revealed that the ANPRM was based on the Request for Comment on Innovative methods to detect illicit activity involving digital assets, released by the Treasury on August 18, 2025. According to the Treasury, the ANPRM remained open for Comments through November 4, 2025.
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