The Federal Deposit Insurance Corporation is moving forward with a key component of the stablecoin regulatory landscape. A newly proposed rule establishes how banks can apply to issue payment stablecoins via a subsidiary.
This initiative directly implements sections of the GENIUS Act, passed this summer. The FDIC board’s action opens the proposed application process to public comment, a standard step in federal rulemaking.
The application, as explained by FDIC counsel Nicholas Simons, would require a detailed business description, ownership details, and an accounting firm engagement letter. These elements are designed to give regulators clear insight into the proposed operation.
According to Simons, the rule is structured to permit thorough evaluation while limiting regulatory complexity for applicants. The underlying GENIUS Act mandates that stablecoins be fully backed by liquid assets like US dollars and imposes audit requirements on large-scale issuers.
