US FDIC to propose GENIUS Act implementation framework this month
The U.S. Federal Deposit Insurance Corp. Acting Chair Travis Hill said the agency plans to propose rules this month to establish a framework for implementing the GENIUS Act."The FDIC has begun work to promulgate rules to implement the GENIUS Act," Hill said in prepared testimony for a House Financial Services Committee hearing on oversight of prudential regulators. "We expect to issue a proposed rule to establish our application framework later this month and a proposed rule to implement the GENIUS Act’s prudential requirements for FDIC-supervised payment stablecoin issuers early next year." The GENIUS Act, or the Guiding and Establishing National Innovation for U.S. Stablecoins Act, creates a federal regulatory framework for stablecoin issuers. President Donald Trump signed it into law in July. The act designates various federal and state bodies to regulate the stablecoin sector. The Tuesday hearing featured testimony from top officials at the FDIC, Federal Reserve, Office of the Comptroller of the Currency and National Credit Union Administration.The FDIC, as the federal agency that insures deposits and supervises banks, will supervise and license subsidiaries of FDIC-supervised institutions that seek to issue stablecoins, according to Hill's statement.The agency is also required to establish capital requirements, liquidity standards and reserve asset diversification standards for stablecoin issuers.Hill's testimony also noted that the FDIC is developing guidance on the regulatory status of tokenized deposits, following recommendations from the President's Working Group on Digital Asset Markets report issued in July.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.