The Federal Deposit Insurance Corp. has advanced U.S. stablecoin regulation by proposing a framework for banks seeking to issue stablecoins for payments. This move is a first step in the implementation of the GENIUS Act and clarifies how regulated institutions can join the growing digital payments market. Importantly, the proposal signals more regulatory structure, not restrictions.
FDIC releases 38-page Stablecoin proposal for banks
According to Bloombergthe FDIC outlined the proposal in a 38-page document on its website: The framework describes how subsidiaries of financially supervised banks can apply to issue payment stablecoins. According to Bloomberg, the proposal will undergo a public consultation period before moving forward with the rulemaking process.
The plan includes a tailored application process in which some lenders can apply for regulatory approval. Acting FDIC Chairman Travis Hill said the approach allows the agency to evaluate safety and soundness without burdening regulations. He added that the process reflects specific risks in payment stability currency activities.
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The proposal – which will allow for 60 days of public comment – was introduced on December 16, 2025. During this time, industry participants and stakeholders can submit feedback. Thereafter, the FDIC will consider revisions before finalizing the framework and moving on to the next regulatory steps.
Under the proposal, insured depository institutions may apply through subsidiaries to make payments as stablecoin issuers. The FDIC would give applicants 30 days’ notice to determine if their submissions are complete. In addition, the agency must make a decision within 120 days of receiving a substantially complete application.
GENIUS Act Requires Authorized Issuers for Payment Stable Coins
It is interesting to note that there is an automatic approval mechanism in the framework. If the FDIC does not act within 120 days, the application is considered approved. This provision should introduce predictability and remove delays for eligible institutions to enter the stablecoin market.
The current proposal mainly focuses on application procedures and not on operating standards. However, Hill said a separate rule on capital, liquidity and risk management requirements will come into effect early next year. That rule would create cautious expectations for stablecoin issuers that have been granted permission to do so.
The proposal is included in a broader scheme, the GENIUS Act. The legislation makes it illegal to issue payment stablecoins in the US without proper authorization. Issuers must qualify as permitted domestic issuers or registered foreign entities.
The law also calls for strict reserve requirements. Stablecoin issuers are required to make a one-to-one commitment to backing a currency by holding high-quality liquid assets such as cash or short-term U.S. Treasury bonds. In addition, issuers are required to release monthly reports on reserves to increase transparency.
Finally, the law barred issuers from paying interest to stablecoin holders. Supervisory responsibilities are divided among the agencies, with the FDIC responsible for subsidiaries of non-member state banks. The Treasury Department further supported efforts to implement the rule by providing advance notice of proposed rulemaking in September 2025.
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