US FDIC Prepares Stablecoin Rules Under GENIUS Act With Public Feedback
The US Federal Deposit Insurance Corporation (FDIC) is preparing to submit its first regulatory proposal for stablecoin issuers...
Quick overview
- The FDIC is set to submit its first regulatory proposal for stablecoin issuers under the GENIUS Act by the end of the month.
- The proposal will outline the requirements for federal oversight, including operational standards and compliance regulations.
- A phased implementation plan will allow companies time to adjust to the new rules, with public feedback being invited in the coming months.
- Other regulatory bodies, including the Federal Reserve and CFTC, are also developing regulations to enhance oversight of the stablecoin market.
The US Federal Deposit Insurance Corporation (FDIC) is preparing to submit its first regulatory proposal for stablecoin issuers under the GENIUS Act, with an expected submission sometime before the end of the month. In a confirmation, Acting Chairman Travis Hill made it clear that the draft proposal outlines the hoops firms will need to jump through to obtain federal oversight and that it will be passed on to the House Financial Services Committee.
This first proposal is a big step towards establishing a federal supervisory framework for the rapidly expanding stablecoin sector, which currently operates with very little clear-cut regulation. Hill made a point of stressing that the rules will lay down clear standards that stablecoin companies need to meet if they want federal supervision – including operational standards and requirements for compliance with regulations.
Key points to keep an eye on:
- Draft rules are expected before the end of the month.
- These will be formally submitted to the House Financial Services Committee.
- Then the public gets a chance to weigh in with their thoughts over the coming months.
- There’s also a phased implementation plan, which should give companies some breathing room to get their act together and comply.
🚨GENIUS ACT’S FIRST RULE UP FOR PROPOSAL
FDIC's Travis Hill says the agency will introduce its FIRST stablecoin application rule THIS MONTH. pic.twitter.com/m1rXfBQc6f
— Coin Bureau (@coinbureau) December 2, 2025
GENIUS Act Implementation Timeline
The GENIUS Act, which was passed earlier this year, set up rules for how regulation will get spread out between federal and state agencies – and also made it clear what stablecoin issuers need to do to fit into this new world. Hill mentioned the FDIC plans to bring out even more rules early next year – this time dealing with capital requirements, the kinds of loans a company can take on, and how it manages its cash reserves.
What all this will do is decide which issuers can get federal oversight and how to determine whether they’re doing enough to meet their obligations. Regulators are trying to find a balance between letting companies innovate and maintaining rules to protect consumers – all while ensuring a clear set of rules for everyone to follow.
Other government agencies are also getting in on the action. The US Treasury invited public feedback in September, and the Federal Reserve is working on regulations that will dictate how much capital and diversification stablecoin issuers need.
Tokenized Deposits and Market Oversight
While the FDIC is working on that stablecoin guidance, they’re also reviewing rules for tokenized deposits, following recommendations from the President’s Working Group on Digital Asset Markets. The eventual goal is to make it clearer what to expect from regulatory bodies regarding tokenized banking products.
Other regulatory bodies are also working on things:
- Federal Reserve: Working on capital and diversification regulations for stablecoin issuers
- CFTC: Coming out with tokenised collateral programs for derivatives traders
- Oversight bodies for Credit Unions are: Thinking through how policymaking might work.
The FDIC plans to implement these regulations in phases, giving issuers time to adjust their operations to meet the new standards. And during a public comment period, they’re making sure all relevant parties have a chance to weigh in before any final decisions are made. The GENIUS Act aims to bring some much-needed stability and transparency to the rapidly growing US stablecoin market – while also giving a leg up to innovation in tokenised financial products.
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