US banks could soon issue stablecoins under FDIC plan to implement GENIUS Act

The Federal Deposit Insurance Corp.'s proposal outlines how banks could seek approval to issue payment stablecoins as US regulators move from legislation to rule-making.

The Federal Deposit Insurance Corp. (FDIC) is moving forward with rule-making under the US GENIUS Act by proposing a framework for how regulated banks could apply to issue payment stablecoins, a key early step in implementing the law’s stablecoin provisions.

In a 38-page document posted to the FDIC’s website, the agency detailed proposed approval requirements for the issuance of payment stablecoins by subsidiaries of FDIC-supervised institutions. 

As Bloomberg reported, the proposal is subject to a public consultation period before advancing to the next stage of the rulemaking process.

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