FDIC Stablecoin Draft Rules Under GENIUS Act Debut

U.S. regulators are moving toward formal oversight of the digital asset sector, with the FDIC stablecoin framework under the GENIUS Act expected to debut within weeks.

FDIC to unveil first draft rules for stablecoin issuers

The U.S. Federal Deposit Insurance Corporation (FDIC) will publish its first draft rules for stablecoin issuers under the GENIUS Act by the end of the month. Acting Chairman Travis Hill confirmed that the proposal will be sent to the House Financial Services Committee, marking a significant step toward federal supervision of the stablecoin market.

According to Hill, the FDIC is finalizing a proposed rule that defines how companies can apply for federal oversight. Moreover, the framework will specify the criteria that stablecoin issuers must meet to qualify for supervision under the statute, which became law earlier this year.

The proposal will address core prudential areas, including capital, liquidity, and reserve management standards. These requirements are designed to enhance financial stability and reduce systemic risk. However, Hill indicated that more technical details and implementation timelines are expected to emerge early next year, once initial feedback has been reviewed.

GENIUS Act structure and supervisory responsibilities

The GENIUS Act, enacted earlier this year, establishes a dedicated federal framework for regulating stablecoins. It divides responsibilities among multiple federal and state authorities, aiming to avoid regulatory gaps while preserving existing banking oversight structures.

In practice, the upcoming draft guidelines will clarify which firms fall under FDIC supervision and how that supervision will interact with other agencies. Furthermore, the interpretation of the law will determine how different categories of issuers are treated, including banks, nonbank financial firms, and new entrants focused solely on digital payments.

For market participants seeking clarity on the GENIUS Act stablecoin regime, the FDIC proposal will serve as a central reference point. That said, full implementation will likely proceed in phases, reflecting both industry feedback and interagency coordination.

Details of the FDIC stablecoin standards

The draft rule is expected to spell out minimum capital and liquidity thresholds for issuers, as well as rules for managing reserves that back stablecoins. These standards will be central to demonstrating that stable-value tokens can withstand market stress, redemptions, and credit events without threatening broader financial stability.

Moreover, the framework will likely address disclosure practices, risk management expectations, and governance for firms seeking federal oversight. While the FDIC has not yet published specific ratios or numerical benchmarks, Hill has emphasized that the focus is on long-term safety and soundness in the digital asset ecosystem.

Additionally, coordination with the Federal Reserve and other regulators will shape how these standards interact with bank capital rules and diversification requirements already under development. This interagency process is required by the GENIUS Act to support a consistent approach to systemic risk.

Tokenized deposits and broader digital asset guidance

Alongside the stablecoin rulemaking, the FDIC is drafting separate guidance on tokenized deposits. This initiative follows recommendations from the President’s Working Group on Financial Markets and the President’s Working Group on Digital Asset Markets, which have both called for clearer oversight of tokenized banking products.

The FDIC has emphasized that its tokenized deposit guidance is distinct from the stablecoin rules. However, both efforts stem from the same policy objective: ensuring that digital representations of money, whether issued by banks or nonbanks, are subject to robust supervision and risk controls.

Other agencies, including the Federal Reserve and additional U.S. regulatory bodies, are also developing policies covering digital assets. They are expected to testify in the coming months on how these frameworks will operate in practice and how different asset types will be treated under existing law.

Role of other regulators and market initiatives

The Federal Reserve has been working on regulations related to capital and diversification for stablecoin issuers, as required by the GENIUS Act. Moreover, these rules are intended to complement the FDIC’s standards and prevent concentration risks in the assets backing stablecoins.

Meanwhile, the Commodity Futures Trading Commission (CFTC) has launched a new program that allows certain stablecoins to be used within U.S. derivatives markets. This move signals growing acceptance of stable-value tokens in regulated financial infrastructure, although it also increases the need for harmonized oversight.

However, these parallel initiatives mean that issuers and investors must navigate a rapidly evolving regulatory landscape. Coordination among agencies will be crucial to avoid fragmented or overlapping requirements that could undermine innovation or stability.

Public comment process and phased implementation

Once the FDIC releases its draft rule, it will open a public comment period lasting several months. During this time, market participants, consumer advocates, academics, and other stakeholders will be able to submit views on the proposed framework, including capital, liquidity, and reserve standards.

Moreover, the agency intends to use this feedback to refine the final rules before they are formally adopted. Implementation is expected to occur in phases, giving stablecoin issuers time to adjust business models, update compliance systems, and align reserve portfolios with regulatory expectations.

As these federal initiatives advance, the emerging fdic stablecoin regime and related rules from the Federal Reserve and CFTC are set to define how stablecoins integrate with the traditional financial system in the years ahead.

In summary, the FDIC’s forthcoming proposal under the GENIUS Act will establish key supervisory standards for stablecoin issuers, while complementary guidance on tokenized deposits and coordinated action by other regulators aims to support a more stable, transparent, and regulated digital asset environment.