CMC News

FDIC Plans #GENIUSAct Framework Release This Month

U.S. FDIC Acting Chair Travis Hill has announced the agency expects to issue an implementation framework for the GENIUS Act later in December. The federal body will supervise and license subsidiaries of FDIC-supervised institutions seeking to issue #stablecoins.

Hill prepared testimony for a House Financial Services Committee hearing on oversight of prudential regulators, stating that work has begun on rules to implement the legislation. The agency plans to release a proposed rule establishing its application framework this month, followed by prudential requirements for FDIC-supervised payment stablecoin issuers early next year.

The Guiding and Establishing National Innovation for U.S. Stablecoins Act creates a federal regulatory framework for stablecoin issuers. President Donald Trump signed the legislation into law in July, designating various federal and state bodies to regulate the sector.

Tuesday's hearing featured testimony from top officials at the FDIC, Federal Reserve, Office of the Comptroller of the Currency, and National Credit Union Administration. The coordinated approach reflects the multi-agency nature of #crypto regulation under the new framework.

The FDIC will supervise and license subsidiaries of institutions under its purview that want to issue stablecoins, according to Hill's statement. As the federal agency insuring deposits and supervising banks, it brings existing expertise to this emerging asset class.