FDIC to Establish Framework for US Stablecoin Regulations This Month, According to Acting Chair

The Federal Deposit Insurance Corporation is set to introduce a formal regulatory framework for US stablecoins later this month, as stated by acting chair Travis Hill.

Key Takeaways:

• The Federal Deposit Insurance Corporation will unveil its inaugural US stablecoin regulatory framework later this month.
• The GENIUS Act designates the FDIC as the primary regulator for bank-issued stablecoins, while other agencies will oversee the remainder of the market.
• New regulations regarding capital, liquidity, and reserves will be established, along with guidance on tokenized deposits.

In prepared remarks for a House Financial Services Committee hearing, Hill indicated that the agency has commenced drafting rules to enforce the law and anticipates releasing a proposal detailing the application process for stablecoin issuers seeking approval.

He mentioned that a distinct proposal outlining prudential standards for issuers under FDIC supervision is expected to be introduced early next year.

GENIUS Act Assigns FDIC Oversight of Bank-Issued Stablecoins

The GENIUS Act, enacted in July by President Donald Trump, established a multi-agency oversight framework for dollar-backed stablecoins.

According to the legislation, the FDIC will oversee the stablecoin-issuing subsidiaries of the banks and firms it currently regulates, while other agencies will manage different segments of the market.

Hill noted that the FDIC’s responsibilities will extend beyond mere documentation. The agency is charged with defining capital requirements, liquidity regulations, and diversification standards for reserve assets, measures designed to ensure that issuers can fulfill redemptions even during periods of market stress.

Similar to other federal regulators, the FDIC will solicit public feedback on its proposal before finalizing it, a process that typically spans several months as agencies review industry input and, if needed, adjust their strategies.

News nugget in FDIC acting chair Travis Hill’s testimony to the House tomorrow:
The FDIC will issue its first proposed rulemaking for the GENIUS Act later this month to “establish our application framework” for stablecoins. So far regulators have only issued an ANPR pic.twitter.com/4DOcDTGPQX

— Brendan Pedersen (@BrendanPedersen) December 1, 2025

The Treasury Department has already progressed on its responsibilities under the law.

Officials initiated their own implementation efforts for the GENIUS Act in August and recently concluded a second public consultation regarding the supervision of non-bank issuers, creating a parallel regulatory pathway that will influence the entire US stablecoin environment.

Hill also disclosed that the agency is developing guidance related to tokenized deposits, reflecting recommendations released in July by the President’s Working Group on Digital Asset Markets.

The report called for regulators to clarify which blockchain-based activities are permissible for banks, including the issuance of digital representations of deposits.

The FDIC, he stated, is preparing guidance to clarify how tokenized deposits should be treated under current banking regulations, an area that has garnered increasing interest from lenders exploring blockchain infrastructure for payments and settlements.

Federal Reserve Joins the Initiative

The Federal Reserve is also collaborating with other regulators on the stablecoin regulatory framework.

In separate comments prepared for the same hearing, vice supervision chair Michelle Bowman indicated that the central bank is working with counterparts to establish capital and liquidity standards intended to connect the sector to the traditional financial system.

Bowman highlighted the necessity for regulatory clarity not only regarding what banks are permitted to do with digital assets but also concerning how supervisors will address new use cases as they arise.

Alongside the FDIC and the Federal Reserve, representatives from the Office of the Comptroller of the Currency and the National Credit Union Administration are also scheduled to testify, emphasizing the broad impact the new regulations will have on the oversight of digital dollars in the US.

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