The post FDIC Advances Stablecoin Application Framework Under GENIUS Act appeared on BitcoinEthereumNews.com.

TLDR The FDIC approved a proposed rule to create an application process for payment stablecoin issuance through subsidiaries. Applicants must detail activities, ownership structures, and include an engagement letter with a public accounting firm. The proposal focuses only on payment stablecoins and excludes other digital asset activities. The GENIUS Act requires full asset backing and annual audits for large stablecoin issuers above $50 billion. The FDIC plans further rules covering capital, liquidity, and risk management for approved stablecoin subsidiaries. Federal regulators moved forward with a stablecoin rulemaking that outlines how insured institutions may issue payment stablecoins. The Federal Deposit Insurance Corporation approved a proposal establishing an application process for subsidiary issuers. The action follows passage of the GENIUS Act, which created a federal stablecoin framework. Fdic Outlines Application Process For Payment Stablecoins The FDIC approved a notice of proposed rulemaking during a board meeting on Tuesday. The proposal explains how institutions may apply to issue payment stablecoins through subsidiaries. The agency said applicants must clearly define proposed stablecoin activities and operational scope. It also requires detailed information on ownership and control structures. FDIC counsel Nicholas Simons described core application requirements during the meeting. He said submissions must include an engagement letter with a registered public accounting firm. Simons stated the framework allows oversight while reducing regulatory burden on applicants. He said the proposal supports safety and soundness reviews of stablecoin activities. The FDIC opened the proposal for public comment following board approval. The agency plans to review feedback before advancing a final rule. Officials emphasized that the framework applies only to payment stablecoins issued by approved subsidiaries. The proposal does not address other digital asset activities. Genius Act Sets Federal Standards For Stablecoin Issuers President Donald Trump signed the GENIUS Act into law earlier this summer. The legislation established nationwide…

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Filed under: News - @ December 17, 2025 12:26 am