WASHINGTON — The Federal Deposit Insurance Corp. has proposed the first formal regulatory framework outlining how U.S. banks could seek approval to issue stablecoins, marking a significant step in implementing new federal stablecoin law and potentially ushering traditional lenders deeper into digital finance, according to industry analysts.
The proposal, approved by the FDIC board, would establish a tailored application process for FDIC-supervised banks and savings institutions to obtain permission to issue payment stablecoins — digital tokens whose value is meant to remain steady relative to a currency such as the U.S. dollar — through separate subsidiaries.
As the CU Daily has been reporting, stablecoin issuance by banks was authorized under the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, which Congress and the White House enacted in July.
What Draft Rule Proposes
According to the FDIC, under the draft rule, banks must submit detailed applications to the FDIC describing their proposed stablecoin and subsidiary’s activities, ownership structure and financial information. The agency would have 30 days to determine whether an application is complete and 120 days to approve or deny the request. If the FDIC fails to act within that period, applications could be automatically approved.
Acting FDIC Chair Travis Hill told Bloomberg the framework would let regulators assess the safety and soundness of proposed stablecoin operations while limiting unnecessary regulatory burdens. The proposal also lays out appeal rights for denied applicants and sets the stage for future rules on capital, liquidity and risk management for stablecoin-issuing subsidiaries, the report added.
Focal Point of Deregulation
As the CU Daily has also been regularly reporting, stablecoins have become a focal point in financial regulation as banks and fintech firms alike explore digital asset opportunities. Proponents say stablecoin issuance by regulated banks could boost efficiency in payments and settlement systems, while critics caution about risks related to liquidity, consumer protection and broader financial stability.
The FDIC said it will accept public comments on the proposal for 60 days after it is published in the Federal Register before finalizing the rule.
