US banks may soon be able to issue their own stablecoins, as the Federal Deposit Insurance Corporation rolls out a proposed framework to implement the GENIUS Act. The move signals a shift from legislation to hands-on regulation and could mark a major turning point for stablecoins in the US financial system.
FDIC outlines approval path for bank-issued stablecoins
The Federal Deposit Insurance Corporation has proposed a formal rulemaking framework that would allow regulated banks to apply for permission to issue payment stablecoins. The proposal represents one of the first concrete steps toward enforcing the stablecoin provisions of the GENIUS Act, recently signed into law.
Detailed in a 38-page document published on the FDIC’s website, the framework explains how subsidiaries of FDIC supervised banks could seek approval to issue stablecoins used for payments. The proposal will now enter a public consultation phase before moving forward in the rulemaking process, according to Bloomberg.
How banks would qualify under the GENIUS Act
Under the proposed rules, banks would issue payment stablecoins through a dedicated subsidiary rather than directly from the parent institution. The FDIC would evaluate both the subsidiary and its parent bank using criteria laid out in the GENIUS Act, including financial strength, management quality, reserve practices and redemption policies.
If approved, the FDIC would become the primary federal regulator overseeing the subsidiary’s stablecoin activities. The agency would also assess broader safety and soundness risks to ensure stablecoin issuance does not threaten the banking system or depositors.
A shift in Washington’s approach to stablecoins
The GENIUS Act, short for Guiding and Establishing National Innovation for US Stablecoins, passed the Senate in June and was signed into law by President Donald Trump in July. The legislation establishes a nationwide regulatory framework for payment stablecoins and requires issuers to maintain full one-to-one reserves backed by US dollars or other approved high quality liquid assets.
The law was welcomed by much of the crypto industry, with executives from firms such as Coinbase, Circle, Robinhood and Gemini attending the signing ceremony. Supporters argue that regulated stablecoins could strengthen dollar liquidity and expand the global reach of the US dollar, a view echoed by Treasury Secretary Scott Bessent. Today, stablecoins in circulation exceed $300 billion globally, driven largely by dollar-pegged tokens.