Acting Chairman of the Federal Deposit Insurance Corporation said that the legal framework for stabl

Travis Hill, acting chairman of the Federal Deposit Insurance Corporation, will inform the House Financial Services Committee that the regulator plans to propose how to apply the Genius Act this month. According to Travis Hill, acting chairman of the Federal Deposit Insurance Corporation, the company will propose a framework for implementing U.S. stablecoin laws later this month.

\"The Federal Deposit Insurance Corporation has begun working on rules to implement the GENIUS Act; we expect to release a proposed rule later this month to establish the framework for our application,\" Hill said in testimony to be filed with the House Financial Services Committee on Tuesday.

He added that the agency will also issue a \"proposed rule early next year to implement the GENIUS Act\'s prudential requirements for issuers of payment stablecoins regulated by the Federal Deposit Insurance Corporation.\"

President Donald Trump signed the GENIUS Act in July, which created oversight and licensing systems for multiple regulatory agencies, including the Federal Deposit Insurance Corporation (FDIC) that oversees its regulator\'s stablecoin issuing subsidiaries.

Hill said the Federal Deposit Insurance Corporation (FDIC) insures the deposits of thousands of banks in case they fail; under the GENIUS Act, the FDIC will also be responsible for setting \"capital requirements, liquidity standards and reserve asset diversification standards\" for stablecoin issuers.

Travis Hill appeared before a Senate Banking Committee hearing to accept his nomination as chairman of the Federal Deposit Insurance Corporation (FDIC). Source: Senate Banking Committee

Federal agencies (such as the Federal Deposit Insurance Corporation) publish their proposed rules for public comment, then review and respond to those comments as needed before issuing a final version of the rules, a process that can take several months.

The U.S. Treasury Department will also supervise some stablecoin issuers, including non-bank institutions. The Treasury Department began implementing the GENIUS Act in August and concluded a second round of public consultation on its implementation proposals last month.

The Federal Deposit Insurance Corporation (FDIC) is developing guidelines for tokenized deposits

Hill said in his speech that the FDIC has also considered the recommendations issued by the President\'s Digital Asset Markets Working Group in July.

Hill said: \"The report recommends clarifying or expanding the scope of allowed activities that banks can engage in, including tokenization of assets and liabilities.\"

He added: \"We are also currently developing guidelines to further clarify the regulatory status of tokenized deposits.\"

Fed assists regulators in developing stablecoin rules

Federal Reserve Deputy Supervisory Chairman Michelle Bowman will also testify on Tuesday that the Fed is \"currently working with other banking regulators to develop capital, liquidity and diversification regulatory requirements for stablecoin issuers as required by the GENIUS Act.\"

According to Bowman\'s prepared speech, she also said,\"We also need to clarify how digital assets are handled to ensure that the banking system can well support digital asset activities.\"

\"This includes not only clarifying the legitimacy of the activity, but also a willingness to provide regulatory feedback on proposed new uses,\" she said.

At a House Finance Committee hearing on Tuesday, the heads of the Office of the Comptroller of the Currency and the National Credit Union Administration, both of which will play a role in implementing the stablecoin rule, will also speak.