Background
The Federal Deposit Insurance Corporation (FDIC) is set to release its first rule framework for US stablecoins later this month, marking a significant step in regulating the digital asset market.
GENIUS Act and FDIC Authority
According to acting chair Travis Hill, the agency has begun drafting rules to implement the GENIUS Act, which was signed into law in July. The proposed framework will outline how stablecoin issuers can apply for approval and is expected to be published soon.
The GENIUS Act establishes the FDIC as the primary regulator for bank‑issued stablecoins, with other agencies overseeing different segments of the market. The FDIC’s role will include defining capital requirements, liquidity rules, and diversification standards for reserve assets to ensure issuers can meet redemptions even during market stress.
Regulatory Process and Timeline
The agency plans to publish its proposal for public comment before finalizing it, a process that often takes months as regulators review industry feedback and revise their approach. Meanwhile, the Treasury Department has already started implementing the GENIUS Act, recently closing a public consultation on supervising non‑bank issuers.
Additional Initiatives
In addition to stablecoin regulations, the FDIC is working on guidance for tokenized deposits, clarifying how these should be treated under existing banking rules. This effort aligns with recommendations from the President’s Working Group on Digital Asset Markets.
Industry Collaboration
The Federal Reserve is also involved in shaping the stablecoin rulebook. Vice supervision chair Michelle Bowman stated that the central bank is collaborating with other regulators to design capital and liquidity standards that integrate the sector with the traditional financial system.
Representatives from the Office of the Comptroller of the Currency and the National Credit Union Administration are also expected to testify at the upcoming hearing, underscoring the comprehensive nature of the new regulations.
Conclusion
The upcoming FDIC rule framework represents a crucial development in the regulation of stablecoins in the US, with multiple agencies working together to ensure a comprehensive and robust oversight structure.
