US FDIC intends to implement the new rules to use GENIUS Act stablecoins as the agency moves forward with its initial tranche of regulation proposals to stablecoin issuers.
The plan to introduce the first framework to the House Financial Services Committee by the end of December, by acting FDIC Chairman Travis Hill, was a major milestone in the federal implementation of the GENIUS Act.
FDIC proposes future regulation on stablecoins
Hill affirmed that the new proposal will show how the FDIC will review applications and oversee issuers in the new federal mandate. The future prudential standards can also be pointed out by his ready testimony, when regulators strive to establish a unified framework in the expanding stablecoin market.
In July, the GENIUS Act was signed by President Trump and became law. The legislation provides a federal framework for payment issuers of stablecoins serving U.S. users. The act only allows licensed issuers to operate. Qualified issuers should be state-qualified or federally qualified nonbank issuers or a subsidiary of an insured depository institution.
According to Hill, the FDIC has maintained a positive attitude towards banks that are engaged in digital asset services in 2025. The agency still anticipates high risk management of these activities as it works on the stablecoin sector, new rules.
Liquidity, capital, and reserve standards are expected to be new
According to Hill, subsidiaries of insured banks that issue payment stablecoins will be monitored by the FDIC. He claimed the GENIUS Act entails several rulemakings, which will establish capital rules, liquidity standards, and reserve diversification rules. He mentioned that the agency will issue an application framework proposal this month and a prudential standards proposal at the beginning of next year.
Another recommendation that was made, according to Hill, was that of the President’s Working Group on Digital Assets Markets. The report helps in defining more specifications on tokenized actions in the banking structure. He claimed that the FDIC is formulating regulations that will make regulatory expectations of tokenized deposits clear.
The other regulators, such as the Federal Reserve, will also give testimony in the forthcoming hearing by the House. This issue of crypto has emerged frequently during recent oversight. Federal Reserve Vice Chair of Supervision Michelle Bowman indicated that the central bank was developing its own capital, liquidity, and diversification regulations for stablecoin issuers in accordance with the GENIUS Act.
Treasury advances public engagement efforts under the GENIUS Act
The Treasury Department is also moving ahead on its duties under the law. On September 18, it posted an Advance Notice of Proposed Rulemaking seeking public comment on how to regulate stablecoins. The department stated that it would promote innovation and mitigate the risks to financial stability.
The ANPRM is based on input from a wide audience of stakeholders. It is based on another request to the Treasury in August, which sought feedback on detecting the illicit use of digital assets. The comment box remained open till November 4.
The concerted action of federal authorities is an indicator of a heavy step towards a common federal system of stablecoin regulation. Key proposals that regulators are seeking to complete within the next few months are taking off as the implementation of the GENIUS Act picks up.
