FDIC Proposes Rule for Bank-Issued Payment Stablecoins Under GENIUS Act
The FDIC board’s proposal outlines an application process for regulated banks to issue payment stablecoins via subsidiaries, aiming to balance safety oversight with reduced regulatory burdens.
Fact Check
The evidence from the provided primary sources directly and unanimously confirms the statement. All three sources are high-authority documents originating from the FDIC itself, and they are entirely consistent with one another. The Notice of Proposed Rulemaking is the official government document that formally proposes the rule in question. The speech by an FDIC official explicitly states that the proposed rule is the agency's first action to implement the GENIUS Act's framework for payment stablecoins. The press release serves as the official public announcement confirming the FDIC's approval of the proposal. Each key element of the statement—the FDIC proposing a rule for payment stablecoins under the authority of the GENIUS Act—is explicitly supported by all three sources. There is no conflicting or contradictory information.
Summary
On February 16, the Federal Deposit Insurance Corporation’s board approved a proposed rule detailing application procedures for institutions under its supervision to issue payment stablecoins via subsidiaries, pursuant to the GENIUS Act signed earlier this year. The process is designed to ensure safety compliance while reducing regulatory burden, and public comments are invited. This marks an important step in rolling out stablecoin regulations, with future rules expected to address capital, liquidity, and risk management requirements.
Terms & Concepts
- FDIC (U.S. bank regulator): The Federal Deposit Insurance Corporation insures deposits and supervises certain financial institutions in the United States.
- Stablecoin: A cryptocurrency pegged to a stable asset, such as a fiat currency, to reduce price volatility.
- GENIUS Act: Legislation proposing governance and oversight for certain digital asset activities, including bank-issued payment stablecoins.