FDIC Outlines Stablecoin Regulatory Framework Under GENIUS Act
On December 2, Travis Hill, the acting Chairman of the FDIC Board of Directors, announced that the agency will submit its first set of new rules for stablecoin issuers under the GENIUS Act to the House Financial Services Committee by the end of December. According to Hill’s prepared testimony, the agency is developing future application and prudential frameworks as federal regulators work to regulate the stablecoin industry.
The Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) was signed into law in July by U.S. President Trump. This legislation established a federal regulatory framework for stablecoin issuers. Under the GENIUS Act, only licensed issuers are permitted to issue a payment stablecoin for use by U.S. individuals, subject to specific expectations and safe harbors. According to the Congress report, permitted issuers must be either a state-qualified payment stablecoin issuer, a federal-qualified nonbank payment stablecoin issuer, or a subsidiary of an insured depository institution.
Travis Hill Details Regulatory Plans for Stablecoins
Travis Hill stated that throughout 2025, the FDIC has adopted a constructive approach regarding banks that offer goods and services related to digital assets, while simultaneously maintaining expectations that such activities are conducted securely and soundly. He further mentioned that the FDIC will be responsible for licensing and overseeing subsidiaries of FDIC-supervised IDIs authorized to produce payment stablecoins. Hill indicated that the GENIUS Act will necessitate several rulemakings, including the establishment of capital requirements, liquidity standards, and reserve asset diversification standards.
“The FDIC has begun work to promulgate rules to implement the GENIUS Act; we expect to issue a proposed rule to establish our application framework later this month and a proposed rule to implement the GENIUS Act’s prudential requirements for FDIC-supervised payment stablecoin issuers early next year.”
Travis Hill, Acting Chairman of the FDIC Board of Directors.
Hill also noted that the FDIC is considering the recommendations from the President’s Working Group on Digital Asset Markets, which released its report in July, in addition to its work under the GENIUS Act. The President’s Working Group report recommends clarifying or increasing authorized activities, with the tokenization of assets and liabilities being one such activity banks may participate in. The FDIC is currently developing regulations to provide further clarity regarding the regulatory status of tokenized deposits.
The House hearing on Tuesday is also scheduled to receive testimony from other bank and credit union authorities, including the Federal Reserve. Cryptocurrency has frequently been a topic of discussion during congressional hearings involving financial regulators in recent years. Michelle, the Federal Reserve Vice Chair for Supervision, stated in her prepared testimony that the central bank is working to develop capital, liquidity, and diversification regulations for stablecoin issuers as required by the GENIUS Act.
Treasury Seeks Public Input on GENIUS Act
Other agencies, such as the Department of the Treasury, have also been actively working on their responsibilities under the GENIUS Act. On September 18, the U.S. Department of the Treasury released an Advance Notice of Proposed Rulemaking (ANPRM), seeking public feedback regarding the Treasury’s implementation of the GENIUS Act.
According to the Treasury report, the GENIUS Act mandates the Treasury to adopt laws that foster innovation in payment stablecoins while establishing an appropriately tailored regime to address financial stability concerns. Cryptopolitan reported that the Treasury requested that the public submit comments, including data and other information that could be helpful. The ANPRM provides the public with an opportunity to contribute to the implementation of the GENIUS Act, even though it does not impose any new requirements at this stage. The Treasury indicated that the ANPRM accepts comments and views from a wide variety of stakeholders.
The Treasury revealed that the ANPRM was informed by the Request for Comment on Innovative Methods to Detect Illicit Activity Involving Digital Assets, which the Treasury released on August 18, 2025. The ANPRM remained open for comments through November 4, 2025.