U.S. Banks Cleared to Issue Stablecoins Under GENIUS Act Framework

The FDIC's unanimous approval of a proposed rule marks a pivotal shift in U.S. financial regulation, enabling state-chartered banks to issue dollar-backed stablecoins through separately capitalized subsidiaries. This MOVE implements the GENIUS Act, which restricts issuance to approved entities known as Permitted Payment Stablecoin Issuers.

The framework specifically targets state nonmember banks and savings associations supervised by the FDIC. Notably, these institutions cannot issue stablecoins directly on their balance sheets—a deliberate containment measure. Instead, they must route operations through FDIC-approved subsidiaries, creating a firewall between traditional banking and digital asset activities.

Payment stablecoins under this regime are defined as digital assets pegged 1:1 to cash or Treasury-grade liquidity. The FDIC's blueprint signals growing institutional acceptance of blockchain-based payment instruments, though within strictly demarcated boundaries.