Hill signals that a wider rule covering capital, liquidity, and risk management for issuers will follow, indicating ongoing regulatory development.

Applicants must submit letters detailing activities, financial information, and plans for asset backing as part of the application package.

The proposal sets approval criteria for both the subsidiary and its parent bank, covering issuer standards, financial condition, management quality, redemption policies, and safety and soundness.

Under the process, institutions would submit letters detailing business plans, financial information, and safety measures for stablecoin issuance.

Contextual updates mention related blockchain and crypto industry developments, including Brazil’s use of blockchain in public auctions and current industry revenue metrics for GoPlus Security.

FDIC releases a 38-page proposal outlining how FDIC‑supervised banks can issue payment stablecoins through a subsidiary, as part of implementing the GENIUS Act.

The GENIUS Act designates FDIC as the regulator for insured depository institutions issuing stablecoins, with a broader rule on capital, liquidity, and risk management expected in coming months.

Applications will undergo a public consultation period before formal rulemaking, showing progression from legislation to rules.

This rulemaking unfolds amid broader crypto-regulation efforts and Senate actions on crypto regulators and policy debates.

The FDIC chair described the process as evaluating safety and soundness while aiming to minimize regulatory burden.

Acting FDIC Chairman Travis Hill notes the application process will assess safety and soundness under statutory factors, with Senate-confirmation anticipated soon.

In December, new regulations enabled the CFTC to launch a pilot program using digital assets as collateral in derivatives markets.