FDIC Prepares First Stablecoin Rules Under GENIUS Act
The U.S. Federal Deposit Insurance Corporation (FDIC) is finalizing its first formal proposal for stablecoin oversight under the GENIUS Act, with acting chairman Travis Hill confirming the rulemaking package will be submitted to Congress by year-end. The framework establishes multi-agency supervision of payment stablecoins, requiring issuers to obtain licenses and meet stringent capital, liquidity, and reserve requirements.
Regulators aim to prevent redemption crises during market stress by enforcing diversification rules and operational standards. The FDIC’s forthcoming proposal will detail compliance procedures for bank-affiliated stablecoin issuers, while a separate 2024 release will outline broader financial requirements for the sector.