FDIC issuing GENIUS Act stablecoin prudential proposal ‘soon’

The FDIC will soon be issuing proposed prudential requirements for FDIC-supervised payment stablecoin issuers, an agency official told Congress.

Details: Testifying before the House Subcommittee on Digital Assets, FDIC Director of Risk Management Supervision Ryan Billingsley said the proposal would include tailored requirements related to reserve assets, capital, liquidity, and principles-based risk management requirements.

Application Proposal: The proposal will add to a growing list of active and anticipated regulatory proposals to implement the GENIUS Act, including the FDIC’s December proposed rule to implement the law’s application provisions. That proposal would establish procedures for the agency to accept and process payment stablecoin issuer applications from FDIC-supervised banks.

Comment Extension: The FDIC last month announced a 90-day extension of the comment deadline for the application proposal from Feb. 17 to May 18 following a requested extension from ICBA and other groups.

ICBA Key Principles: ICBA in November sent key principles for payment stablecoin supervision in a letter to the Treasury Department regarding implementation of the GENIUS Act.