The Federal Deposit Insurance Corporation (FDIC) Finalizes Guidelines for the GENIUS Act

According to Acting Chairman Travis Hill, the Federal Deposit Insurance Corporation (FDIC) is preparing to release its first formal proposal outlining how stablecoin issuers will operate under the GENIUS Act.

The rulemaking plan is expected to be submitted to the House Financial Services Committee by the end of December, marking an important step in the implementation of the country\'s new federal stablecoin framework.

The Federal Deposit Insurance Corporation is about to complete the first draft of the GENIUS Act\'s stablecoin rules

The National Innovation Act to Guide and Establish U.S. Stabilcoins (GENIUS Act), signed into effect in July, creates a multi-agency regulatory system for paying stablecoins.

According to the law, only licensed issuers can provide stablecoins to U.S. users, and supervision is jointly responsible for the Federal Deposit Insurance Corporation, the Federal Reserve, the Treasury Department and other regulatory agencies.

Hill said the FDIC has been developing application procedures and prudential standards that will apply to stablecoin issuing subsidiaries of institutions regulated by the FDIC.

These standards include capital requirements, liquidity expectations and reserve asset diversification rules, designed to ensure that issuers can meet redemption needs during stressful times.

The agency also expects to release a separate proposal early next year detailing the financial and operational requirements that stablecoin issuers must meet after they are approved.

Regulators outline broader responsibilities for digital assets

Hill pointed out that the Federal Deposit Insurance Corporation (FDIC) has adopted a cautious and constructive attitude towards banks exploring digital asset services to ensure that related activities are \"safe and sound.\" One of the agency\'s ongoing efforts is to implement the recommendations made by the President\'s Digital Asset Markets Working Group.

One of the areas that have attracted much attention is tokenized deposits, a digital representation of bank deposits issued on a blockchain network. Hill confirmed that new guidelines are being developed to clarify how these tools can be integrated into existing banking rules, reflecting the industry\'s growing interest in tokenization of payments and settlements.

Other regulatory agencies are also advancing their responsibilities under the GENIUS Act. Michelle Bowman, the Federal Reserve\'s Vice Chairman for Regulation, said the Federal Reserve is working with banking regulators to develop capital, liquidity and diversification standards for stablecoin issuers.

The Treasury Department continues to conduct a public consultation process

The U.S. Treasury also played a central role in implementing the Genius Act.

In September, the agency issued a proposed advance notice of rule-making (ANPRM) to solicit public comment on its stablecoin regulatory approach. The consultation period lasted until early November, and industry participants, academia and consumer groups were invited to express their opinions.

The Ministry of Finance said the consultation was aimed at balancing innovation and financial stability. Public input will help develop final proposals that will regulate non-bank stablecoin issuers and related digital asset activities.

As the Federal Deposit Insurance Corporation\'s first proposal nears completion, federal agencies are entering the next phase, which is expected to last for several months. After the draft rules are released, they will undergo public review before being finally adopted and implemented in the stablecoin market in stages.