FDIC proposes application process for bank subsidiaries to issue stablecoins  

The FDIC issued a proposed rule that would implement the application provisions under the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS) Act.  

Background: The GENIUS Act allows insured depository institutions to issue payment stablecoins through a subsidiary and to engage in certain related activities. The FDIC and other banking agencies are required to issue regulations establishing an application process for bank subsidiaries to seek approval to issue payment stablecoins.  

Proposal Specifics: The proposed rule would establish procedures for the agency to accept and process payment stablecoin issuer applications from FDIC-supervised banks, including:   

• Filing requirements.   

• The statutory factors to be considered. 

• Process details including a 120-day timeframe for the agency to review an application.   

• An appeal process for denied applications.   

Input: Comments on the proposal will be accepted for 60 days after publication in the Federal Register.  

Recent ICBA Advocacy: ICBA last month sent key principles for payment stablecoin supervision in a letter to the Treasury Department regarding implementation of the GENIUS Act.