FDIC Proposes Stablecoin Issuance Framework Under GENIUS Act

The FDIC proposes a framework under the GENIUS Act outlining how banks can apply to issue payment stablecoins through subsidiaries.

The Federal Deposit Insurance Corp. has advanced US stablecoin regulation by proposing a framework for banks seeking to issue payment stablecoins. The move is an initial step in the implementation of the GENIUS Act and clarifies how regulated institutions can join the growing digital payments market. Importantly, the proposal signals more regulatory structure and not restriction.

 FDIC Publishes 38-Page Stablecoin Proposal for Banks

According to Bloomberg, the FDIC outlined the proposal in a 38-page document on its website: The framework details how subsidiaries of financially supervised banks can apply to issue payment stablecoins. According to Bloomberg, the proposal will have a public consultation period before proceeding with the rulemaking process.

The plan lays out a customized application process in which some lenders will be able to file for regulatory approval. Acting FDIC Chair Travis Hill said the approach allows the agency to evaluate safety and soundness without burdening regulations. He added that the process reflects specific risks with payment stablecoin activities.

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The proposal – which opens 60 days of public comment – was introduced on December 16, 2025. During this time, participants of the industry and stakeholders can submit feedback. Afterwards, the FDIC will consider revisions before finalizing the framework and moving on to the next regulatory steps.

Under the proposal, insured depository institutions are permitted to apply to be permitted payment stablecoin issuers through subsidiaries. The FDIC would give applicants 30 days notice to determine whether their submissions are complete. In addition, the agency must decide within 120 days after receiving a substantially complete application.

GENIUS Act Requires Authorized Issuers for Payment Stablecoins

It is interesting to note that there is an automatic approval mechanism in the framework. If the FDIC does not act within the 120 days, the application would be deemed approved. This provision is to introduce predictability and eliminate delays for qualifying institutions to enter the stablecoin market.

The current proposal mainly emphasizes the application procedures and not the operation standards. However, Hill said a separate rule on capital, liquidity, and risk management requirements is due to start early next year. That rule would set prudent expectations for the issuers of stablecoins who are approved to do so.

The proposal is contained in a broader scheme, the GENIUS Act. The legislation makes it illegal to issue payment stablecoins in the US without proper authorization. Issuers need to be qualified as permitted domestic issuers or registered foreign entities.

The Act also calls for strict reserve requirements. Stablecoin issuers are required to hold one-to-one in support of a currency by holding high-quality liquid assets such as cash or short-term US Treasuries. Additionally, the issuers are required to release monthly reports on the reserves to increase transparency.

Finally, the Act has barred issuers from paying interest to stablecoin holders. Regulatory responsibilities are split between agencies, with the FDIC having responsibility over subsidiaries of state non-member banks. The Treasury Department further backed up efforts to implement the rule by issuing an advance notice of proposed rulemaking in September 2025.

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