Catenaa, Wednesday, December 17, 2025- The Federal Deposit Insurance Corporation moved forward Tuesday with implementing a federal stablecoin law, approving a proposed rule that outlines how banks could issue payment stablecoins through subsidiaries.
The FDIC board approved a notice of proposed rulemaking that establishes an application framework for institutions seeking approval to engage in stablecoin issuance.
The proposal opens a public comment period and marks the agency’s first formal step toward enforcing provisions of the GENIUS Act, which became law earlier this year.
Under the proposal, applicants would be required to detail planned stablecoin activities, explain the subsidiary’s ownership and control structure, and submit an engagement letter with a registered public accounting firm.
FDIC staff said the process is designed to allow supervisors to assess safety and soundness risks while limiting unnecessary compliance demands.
The GENIUS Act, signed into law this summer by President Donald Trump, created a nationwide regulatory structure for stablecoins.
The statute requires payment stablecoins to be fully backed by U.S. dollars or similarly liquid assets. It also mandates annual audits for issuers whose stablecoins exceed $50 billion in market value and sets standards for both domestic and foreign issuers.
Acting FDIC Chair Travis Hill has previously told lawmakers that the agency would release an implementation framework for the law before year’s end.
On Tuesday, Hill said the FDIC also plans to propose additional rules in the coming months covering capital, liquidity, and risk management standards for approved stablecoin subsidiaries.
