FDIC Advances Stablecoin Framework Under GENIUS Act, Opening Doors for Bank-Issued Stablecoins
The Federal Deposit Insurance Corporation (FDIC) has taken a significant step toward integrating stablecoins into the traditional banking system. Acting Chair Travis Hill unveiled a new application process for banks seeking to issue payment stablecoins through subsidiaries, marking the first regulatory movement under the GENIUS Act.
Banks must submit comprehensive proposals detailing stablecoin design, subsidiary operations, and financial safeguards. The FDIC promises 30-day preliminary reviews, signaling urgency to establish guardrails for this emerging asset class. This development could accelerate institutional adoption of blockchain-based payments while maintaining traditional oversight mechanisms.