FDIC Unveils Application Process for Bank-Issued Stablecoins

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The Federal Deposit Insurance Corporation has taken a step to operationalize parts of the recently passed GENIUS Act. A newly proposed rule would create a pathway for institutions to issue payment stablecoins.

The FDIC board voted to advance a notice of proposed rulemaking, which now enters a public comment period. The proposal outlines the specific requirements for an institution to establish a subsidiary for stablecoin issuance.

According to FDIC counsel Nicholas Simons, the application must comprehensively outline the subsidiary’s planned activities and its ownership structure. A critical component is the inclusion of an engagement letter from a registered public accounting firm.

The intent, Simons noted, is to enable effective oversight without undue burden. The proposed rule seeks to allow the FDIC to assess the safety and soundness of proposed stablecoin operations efficiently. This action follows the enactment of the GENIUS Act, which established federal rules requiring stablecoin reserves and audits for major issuers.