FDIC Proposes Stablecoin Issuer Rules Under GENIUS Act
The U.S. Federal Deposit Insurance Corporation (FDIC) has proposed rules for stablecoin issuers under the GENIUS Act, which was enacted to establish a federal framework for payment stablecoins.
The proposal follows the FDIC's vote on Tuesday and covers 144 specific questions over a 60-day public comment period. The rules target permitted payment stablecoin issuers, including those that are subsidiaries of insured depository institutions or have received authorization from a federal or state regulator.
FDIC Chair Travis Hill stated that growth in the stablecoin sector has accelerated as traditional finance firms explore crypto and crypto companies seek bank charters. He pointed to the shift in posture toward digital assets and ongoing technological development by both banks and nonbanks as factors driving the need for formal rules.