TLDR
- The U.S. FDIC will release its first draft rules for stablecoin issuers under the GENIUS Act by the end of the month.
- The guidelines will define the process for stablecoin issuers to apply for federal supervision.
- Key areas of focus in the proposal include capital, liquidity, and reserve management standards for issuers.
- The FDIC is also preparing separate guidance for tokenized deposits, following recommendations from the President’s Working Group.
- Public feedback will be invited once the draft rules are released, helping shape the final version of the stablecoin guidelines.
The U.S. FDIC is set to release its first draft rules for stablecoin issuers under the GENIUS Act this month. Acting Chairman Travis Hill confirmed that the proposal will be sent to the House Financial Services Committee. This marks the beginning of federal oversight on the stablecoin industry.
FDIC Prepares to Propose Rules for Stablecoin Issuers
The FDIC is finalizing a proposed rule that will outline how companies can apply for federal supervision. Hill confirmed that the draft guidelines will be delivered before the month ends. This framework will define the process for stablecoin issuers to qualify for federal oversight under the GENIUS Act.
The proposal will cover key areas such as capital, liquidity, and reserve management. These elements will form part of the new financial standards for stablecoin issuers. Hill stated that more details will be released early next year, focusing on financial stability.
The GENIUS Act, which became law earlier this year, aims to regulate stablecoins. The law divides responsibilities among various federal and state agencies. The upcoming draft guidelines will clarify the framework for which firms qualify for supervision.
Details on FDIC Stablecoin Guidelines and Tokenized Deposits
Along with the stablecoin guidelines, the FDIC is preparing guidance for tokenized deposits. This follows the recommendations made by the President’s Working Group on Digital Asset Markets. The group called for clearer supervision on tokenized banking products. The FDIC’s guidance on tokenized deposits is separate from the stablecoin rules.
Additionally, the Federal Reserve and other regulatory agencies are also involved in creating relevant policies. They are expected to testify on the supervision of digital assets in the coming months. The Federal Reserve has been working on regulations related to capital and diversification for stablecoin issuers. These regulations are required by the GENIUS Act to maintain financial stability.
Meanwhile, the CFTC has introduced a new program that allows stablecoins to be used in U.S. derivatives markets. As the FDIC prepares its draft rules, it will open a public comment period. The public will have several months to provide feedback on the guidelines. This feedback will help inform the final version of the rules, which will be implemented in phases.
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Source: https://blockonomi.com/u-s-fdic-prepares-to-release-stablecoin-issuer-rules-under-genius-act/