FDIC Launches First Stablecoin Rule Proposal Under GENIUS Act

The U.S. Federal Deposit Insurance Corporation (FDIC) has unveiled its first formal rule proposal under the newly enacted stablecoin legislation, marking a key step in the regulation of dollar-backed digital assets.

On Tuesday, the FDIC’s board voted unanimously to open a 60-day public consultation on a proposed framework governing how FDIC-supervised banks can apply to issue stablecoins through subsidiaries. The proposal sets out a structured process for submitting applications, reviewing them within a 120-day approval window, and appealing rejected applications.

The initiative is being led by Acting Chairman Travis Hill, who has also been nominated by President Donald Trump to serve as the FDIC’s permanent chair. Hill said the proposed framework is designed to balance innovation with financial stability while reducing unnecessary regulatory burden.

“Under the proposal, the FDIC would adopt a tailored application process that would enable the agency to evaluate safety and soundness while minimizing regulatory burden on applicants,” Hill said.

The proposal stems from the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, the first major crypto-focused law passed by Congress. The legislation establishes a multi-regulator oversight structure for stablecoin issuers, assigning supervisory responsibility to the FDIC for insured depository institutions.

Hill noted that this application framework is only the first phase of the FDIC’s stablecoin rulemaking agenda. A more comprehensive regulation addressing capital, liquidity, and risk management requirements for stablecoin issuers is expected to follow in the coming months.

Under the proposed rules, banks seeking approval would be required to submit detailed documentation outlining their business models, financial condition, and plans for maintaining safe and sound stablecoin issuance operations.

If adopted, the framework would formalize how regulated banks can participate in the stablecoin market, reinforcing the U.S. government’s broader effort to bring digital asset activity within the traditional financial system.