FDIC to Release Stablecoin Regulatory Framework This Month, Says Acting Chair

The United States Federal Deposit Insurance Corporation is preparing to publish its first major proposal for implementing federal stablecoin legislation, according to comments from acting chair Travis Hill. His remarks, included in testimony scheduled for delivery to the House Financial Services Committee, indicate that the agency expects to roll out an initial framework later this month.

Hill said the FDIC has begun formal work on its responsibilities under the GENIUS Act, a law signed in July that creates a multiregulator system for licensing and overseeing stablecoin issuers. Under this legislation, the FDIC is tasked with supervising stablecoin-issuing subsidiaries of the banks and institutions already under its purview. The upcoming proposal will outline how applicants can seek approval to operate within this new structure.

A second regulatory package is planned for early next year. That set of rules will detail prudential standards for stablecoin issuers overseen by the FDIC, including specific requirements for liquidity, capital reserves, and diversification of backing assets. Hill emphasized that these components are essential for integrating stablecoin activity safely into the traditional banking system.

As with other federal regulations, the FDIC’s proposed rules will be open for public comment. After collecting input, the agency may revise its proposals before publishing final versions, a process that could extend for several months.

Work is also underway at the Treasury Department, which began implementing its share of the GENIUS Act in August and recently completed a second round of public feedback. Multiple regulators will ultimately share responsibility for supervising different classes of stablecoin issuers, depending on their structure and whether they operate within or outside the banking system.

Hill also noted that the FDIC is evaluating broader guidance related to tokenized deposits and other digital-asset applications. He referenced recommendations released earlier in the year by the President’s Working Group on Digital Asset Markets, which urged regulators to clarify which digital-asset activities banks may engage in. According to Hill, the FDIC is currently developing guidance that would bring greater clarity to the regulatory status of tokenized deposit products.

Additional regulators are preparing their own roles under the GENIUS Act. Michelle Bowman, the Federal Reserve’s vice chair for supervision, is expected to tell lawmakers that the Fed is working with other banking agencies to craft capital, liquidity, and diversification requirements for stablecoin issuers. She stressed the importance of clearly defining how digital assets fit into banking rules so that financial institutions can support emerging technologies responsibly.

Leaders from the Office of the Comptroller of the Currency and the National Credit Union Administration will also testify at the hearing, as each agency has responsibilities under the new stablecoin oversight framework.