FDIC Moves From Law to Rulemaking
The Federal Deposit Insurance Corporation has published a 38-page proposal detailing how FDIC-supervised banks could seek approval to issue payment stablecoins through regulated subsidiaries. The move marks one of the first concrete steps in implementing the GENIUS Act, which was signed into law earlier this year.
Under the proposal, banks would not issue stablecoins directly. Instead, they must apply through a separate subsidiary, which would then be evaluated by the FDIC alongside its parent institution. The framework focuses heavily on financial soundness, governance, and risk controls, signaling a cautious but clear regulatory path forward.
What Banks Must Prove to Issue Stablecoins
According to the FDIC, approval will depend on several core criteria laid out in the GENIUS Act. These include the bank’s capital strength, management quality, operational resilience, and the subsidiary’s ability to meet strict stablecoin issuance and redemption standards.
The agency also emphasized that issuers must demonstrate clear one-to-one reserve backing, transparent redemption policies, and robust compliance systems. Once approved, the FDIC would act as the primary federal supervisor for the stablecoin subsidiary, giving regulators direct oversight of issuance activities.
A Shift in How U.S. Banks Engage With Crypto
The proposal highlights a broader shift in Washington’s stance toward digital assets. The FDIC has increasingly moved away from using vague reputational risk concerns to discourage banks from engaging with crypto-related businesses. This change could significantly reshape how traditional financial institutions interact with blockchain-based products.
By creating a formal approval pathway, the FDIC is effectively replacing uncertainty with regulated access, allowing banks to participate in the stablecoin market without operating in legal gray zones.
The GENIUS Act’s Bigger Ambition
The Guiding and Establishing National Innovation for U.S. Stablecoins Act passed the Senate in June and was signed by President Donald Trump shortly after. The law establishes a federal framework for payment stablecoins, requiring issuers to maintain fully backed reserves in U.S. dollars or other approved high-quality liquid assets.
The legislation was welcomed across the crypto industry, with executives from Coinbase, Circle, Gemini, Robinhood, and others attending the bill’s signing. Treasury Secretary Scott Bessent has also argued that regulated stablecoins could strengthen global U.S. dollar dominance by extending dollar liquidity onto blockchain rails.
Stablecoins Enter the Financial Mainstream
Global stablecoin circulation has now surpassed $300 billion, driven almost entirely by dollar-pegged tokens. With the FDIC’s proposal now open for public comment, the U.S. regulatory system is signaling that bank-issued stablecoins are no longer theoretical - they’re being actively planned.
If finalized, this framework could mark the moment when stablecoins move fully into the regulated financial mainstream, reshaping payments, settlements, and digital finance at scale.
