FDIC Establishes Structured Application Process for Bank-Issued Stablecoins Under GENIUS Act
The Federal Deposit Insurance Corporation (FDIC) has introduced a definitive regulatory framework for stablecoin issuance by supervised banks. The new rule, enacted under the GENIUS Act, mandates that all FDIC-approved institutions must secure explicit approval before launching stablecoin operations through subsidiaries. This MOVE aligns with broader efforts to balance financial innovation with systemic stability.
Applications will require detailed disclosures—including ownership structures, operational blueprints, and third-party audit commitments. Each submission faces rigorous evaluation against capital adequacy, consumer protection, and anti-fraud standards. The dollar-backed requirement eliminates ambiguity about reserve composition, mirroring global trends toward asset-backed stablecoins.
By formalizing timelines and documentation requirements, the FDIC provides much-needed clarity for traditional finance players entering the digital asset space. This regulatory certainty may accelerate institutional adoption of blockchain-based payment systems while maintaining safeguards comparable to conventional banking products.
