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The FDIC will release its stablecoin rule framework later this month, Acting Chair Travis Hill told Congress Tuesday, marking the first federal capital and reserve standards for bank-issued digital dollars under the GENIUS Act signed by President Donald Trump in July.
In his testimony, Hill emphasized that the FDIC has already begun drafting regulatory guidance outlining how issuers will apply for approval.
A formal proposal is expected within weeks, while a second, more detailed prudential rulemaking—covering reserve diversification, redemption procedures, and liquidity buffers—is scheduled for early next year.
Under the GENIUS Act’s multi-agency structure, the FDIC will supervise stablecoin-issuing subsidiaries of banks it already regulates.
Other portions of the market—particularly non-bank stablecoin issuers—fall to the Treasury Department, the Federal Reserve, and additional federal agencies.
Treasury officials have already launched their own public consultations, closing a second round of comments in recent weeks as they define requirements for non-bank issuers, setting up a parallel regulatory track that will shape the entire landscape for U.S. digital dollars.
The upcoming framework will set capital requirements, liquidity thresholds, and reserve diversification standards designed to prevent runs and ensure issuers can meet large-scale redemption requests—even during severe market volatility.
In a significant reveal, Hill confirmed the FDIC is drafting new guidance on tokenized deposits, aligning with recommendations made earlier this year by the President’s Working Group on Digital Asset Markets.
The guidance will clarify how blockchain-based bank liabilities—digital representations of traditional deposits—are treated under existing banking rules.
This marks a critical step for institutions exploring blockchain rails for payments and settlements.
Banks need regulatory clarity on how tokenized deposits fit within the existing framework, praising the agency’s proactive stance. These rules will determine how fast the industry can safely scale.
The Federal Reserve is also coordinating closely with the FDIC to build a cohesive regulatory blueprint for Bank-Issued Stablecoins. Vice Chair for Supervision Michelle Bowman, in her own prepared remarks, stated that the central bank is finalizing capital and liquidity standards to ensure stablecoins remain anchored to the broader financial system.
With the right guardrails, Bank-Issued Stablecoins can strengthen the financial system.”
Representatives from the Office of the Comptroller of the Currency and the National Credit Union Administration are also slated to testify, highlighting the breadth of the regulatory shift underway.
As agencies coordinate their rulemaking efforts, the coming months will mark a defining moment for Bank-Issued Stablecoins.
The upcoming FDIC rulebook is expected to cement a new era of accountability, risk management, and regulatory transparency—potentially boosting consumer confidence while reshaping the competitive landscape for digital dollar issuers.
With the GENIUS Act’s mandates rolling into effect, a unified federal stablecoin framework is finally taking shape—one that could set a global standard for how tokenized dollar instruments operate inside the banking system.
As the FDIC prepares to release its powerful new framework, Bank-Issued Stablecoins stand at the brink of a regulatory revolution that could redefine digital dollars for decades.
With federal agencies moving in lockstep, the U.S. is poised to set the global benchmark—one that could either supercharge innovation or expose who’s unprepared for the new era of compliance.
