US Regulators Fast-Track Stablecoin Rules as GENIUS Act Shapes New FDIC Oversight

A coordinated push by federal agencies is building the United States' first comprehensive stablecoin supervision system, with the FDIC set to publish a crucial application framework for issuers before year-end.

Introduction: A Regulatory Framework Takes Shape

The landscape for digital assets in the United States is undergoing a foundational shift. Federal regulators are moving with notable speed to construct a new supervisory system for payment stablecoins, driven by the mandates of the recently enacted GENIUS Act. This legislative framework is catalyzing a coordinated effort across key agencies, including the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve, and the Treasury Department. The most immediate development comes from the FDIC, which is poised to release a proposed rule this month outlining how bank subsidiaries seeking to issue payment stablecoins can apply for approval. This marks one of the earliest concrete steps in translating the GENIUS Act from legislation into operational policy, setting the stage for a structured oversight regime that aims to bring clarity, safety, and stability to a critical segment of the crypto ecosystem.

The FDIC's Pivotal Role: Licensing and Supervising Issuers

FDIC Develops Licensing Framework for Stablecoin Issuers

The FDIC has emerged as a central actor in the new regulatory architecture. According to written testimony scheduled for delivery to the House Financial Services Committee on December 2, the agency is finalizing a proposed rule that will establish an application process for payment stablecoin issuers. This framework, expected before the end of December, represents the first formal proposal from the FDIC under its GENIUS Act obligations. The process began earlier this year following the law's enactment.

The publication of this application framework will initiate a standard regulatory procedure: a public comment period where industry participants, consumer advocates, and other stakeholders can provide feedback. This phase typically spans several months before the agency moves toward issuing a final rule. Importantly, this is just the beginning of the FDIC's rulemaking agenda. The agency has confirmed that a second proposal, focusing on prudential requirements for FDIC-supervised issuers, is planned for early next year. This two-step approach indicates a methodical rollout, starting with who can apply and how, followed by the detailed standards they must meet to operate.

The GENIUS Act: Blueprint for a National Oversight Structure

GENIUS Act Expands Oversight for Bank-Linked Stablecoins

The driving force behind this regulatory activity is the GENIUS Act. The legislation establishes a national structure that requires federal and state regulators to coordinate their supervision of stablecoin issuers, moving away from a patchwork of uncertain state-level approaches. A core provision of the law designates the FDIC as the primary overseer and licensor for subsidiaries of insured depository institutions—essentially, banks—that wish to issue payment stablecoins.

Under this authority, the FDIC is tasked with setting out specific operational rules. These will include capital rules, which dictate how much financial backing an issuer must hold; liquidity expectations, ensuring assets can be readily converted to meet redemption requests; and reserve diversification standards, which govern where and how the backing assets are held to mitigate risk. The FDIC's work is also informed by recommendations released in July by the President’s Working Group on Digital Asset Markets, which urged regulators to clarify which digital asset activities are permissible for banks, including tokenization.

Beyond Stablecoins: The Emerging World of Tokenized Deposits

Tokenised Deposits Included in Regulatory Review

The regulatory scope extends beyond standalone stablecoins. The FDIC is concurrently preparing new guidance aimed at tokenised deposits. This area has gained significant attention as traditional financial institutions explore creating digital representations of conventional bank deposits on blockchain networks. Unlike algorithmic or asset-backed stablecoins issued by non-bank entities, tokenized deposits are fundamentally a digitized form of an existing bank liability.

The forthcoming guidance is expected to help banks understand which tokenization activities fall within existing supervisory boundaries and how they will be monitored. This proactive move signals regulators' recognition that banking innovation is not static and that clear guardrails are needed to ensure these new products maintain deposit insurance protections and adhere to longstanding banking laws. It represents an effort to integrate novel technological applications into the traditional, regulated financial system rather than allowing parallel systems to develop without oversight.

A Coordinated Federal Push: The Fed and Treasury Join the Effort

Federal Reserve Coordinates Its Own Stablecoin Standards

The regulatory build-out is a multi-agency endeavor. The Federal Reserve will join the FDIC at the December 2 House hearing, with Vice Chair for Supervision Michelle Bowman detailing the central bank’s parallel work on stablecoin rules. The Federal Reserve is coordinating with other banking regulators to craft the capital, liquidity, and diversification standards required under the GENIUS Act. Its focus includes creating clarity for banks engaged in digital asset activities and providing regulatory feedback on emerging use cases.

This joint push aims to ensure the banking system can support responsible digital asset development while maintaining overall financial stability and compliance. Other agencies are advancing their obligations as well. The Treasury Department has already completed its public consultations, which concluded in November, and is now developing its own rules. These efforts will run in parallel with the FDIC and Federal Reserve processes, contributing distinct pieces to the broader national framework governing stablecoins across the U.S.

Conclusion: Building the Infrastructure for a Digital Financial Future

The fast-tracking of stablecoin rules signifies a pivotal moment for cryptocurrency in the United States. The enactment of the GENIUS Act has provided a clear legislative mandate, breaking years of regulatory inertia and setting federal agencies on a defined path toward comprehensive oversight. The upcoming FDIC application framework is not merely a procedural step; it is the opening move in establishing a legitimate, federally recognized pathway for insured financial institutions to become major participants in the digital asset economy.

For market participants, this evolving framework promises greater legal clarity and reduced operational uncertainty for compliant projects, potentially attracting more institutional capital. However, it also establishes stringent requirements that will shape market structure. Readers should closely monitor the publication of the FDIC's proposed rule later this month and participate in the subsequent comment period, as these details will define the practical entry requirements for bank-issued stablecoins. Furthermore, watching how standards from the Fed and Treasury dovetail with FDIC rules will reveal the full shape of U.S. stablecoin policy. This coordinated regulatory push is laying down the infrastructure for what could become a significant new chapter in both banking and digital assets