FDIC Launches First U.S. Stablecoin Rulemaking Under GENIUS Act
The Federal Deposit Insurance Corporation has initiated formal rulemaking to establish how banks can create and run stablecoin subsidiaries under the GENIUS Act framework. The proposal sets out a pathway for insured depository institutions to issue or sponsor stablecoins while remaining under bank supervision, marking the first dedicated U.S. regulatory effort focused on bank-affiliated stablecoins.
This development matters because it could bring clearer oversight, consumer protections and capital requirements to a sector that has operated largely under fragmented rules. By moving through the notice-and-comment process, the FDIC’s action may accelerate bank participation in stablecoins, spur competition with private issuers, and prompt coordination with other regulators. Market participants should watch for draft rule details and the public comment period to understand timing, prudential safeguards, and implications for wallets, payments and crypto markets.