FDIC Kicks Off Rulemaking for Bank Stablecoins
The Federal Deposit Insurance Corporation (FDIC) is set to formally outline the parameters under which U.S. banks can issue payment stablecoins as part of the GENIUS Act.
A 38-page proposal was published detailing regulatory and operational requirements for banks wishing to issue stablecoins through subsidiaries.
The framework aims to:
- Provide transparency for digital dollar issuance
- Protect consumer interests
- Ensure financial stability
The proposal includes a consultation period during which public feedback will be collected before further rulemaking.
The Operations of the FDIC’s Framework
Under the proposed FDIC stablecoin framework, banks would:
- Satisfy reporting standards for financial condition, quality of management, and redemption policy
- Comply with all requirements of the GENIUS Act, including full one-to-one reserve backing with U.S. dollars or other approved high-quality liquid assets
- Be regulated directly by the FDIC for stablecoin issuance, redemption, and operational safety.
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The GENIUS Act and Coin Supervision
The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins) was signed into law in July 2025 by U.S. President Donald Trump after Senate approval in June.
The legislation establishes a comprehensive regime for payment stablecoins, providing clarity for banks and digital asset issuers.
Major crypto companies such as Coinbase, Circle, Robinhood, and Gemini welcomed the law. Executives from many of these firms attended the signing ceremony.
Supporters argue the GENIUS Act:
- Improves liquidity in the U.S. dollar
- Strengthens financial stability
- Expands the dollar’s reach as a global reserve currency via digital tokens
Expansion of the Stablecoin Market
Stablecoins are increasingly used in global trade, providing price stability relative to fiat currencies like the USD.
The FDIC framework positions U.S. banks to handle digital dollars safely for:
- Treasury management
- Cross-border payments
- Retail transactions
- Other day-to-day banking operations
Importance of the FDIC Stablecoin Framework
The FDIC proposal is a critical step toward mainstream adoption of digital dollars through regulated banking channels.
By clearly defining:
- Approval criteria
- Operational safeguards
- Oversight mechanisms
The framework provides a blueprint for federally supervised digital finance, minimizing risks while accelerating adoption of stablecoins in traditional financial systems.
