- FDIC approved a proposed rule creating a formal application and review process for banks issuing payment stablecoins via subsidiaries.
- The rule implements the GENIUS Act, giving FDIC oversight and setting a 120-day review window plus an appeals process.
- A 60-day public comment period opens as FDIC plans further rules on capital, liquidity, and risk management standards.
The Federal Deposit Insurance Corporation approved its first stablecoin rule proposal on Tuesday, December 16, 2025, in Washington. The vote sets a formal application process for banks seeking to issue payment stablecoins. The action follows passage of the GENIUS Act and outlines how insured institutions may proceed through FDIC oversight.
FDIC Board Approves New Application Framework
According to the FDIC, the board unanimously approved a notice of proposed rulemaking. The proposal implements application provisions required under the GENIUS Act. It allows FDIC-supervised state nonmember banks and savings associations to issue payment stablecoins through subsidiaries. However, each subsidiary must receive FDIC approval before issuing stablecoins.
The proposed rule establishes how the FDIC will review applications. Notably, it requires evaluation based on statutory safety and soundness factors. The FDIC also set a 120-day review window once applications are deemed complete. Additionally, the proposal creates a formal appeal process for denied applications.
Role of GENIUS Act and Regulatory Oversight
The Guiding and Establishing National Innovation for U.S. Stablecoins Act became law in July 2025. It marked the first comprehensive federal framework governing stablecoin issuers. Under the law, insured depository institutions fall under FDIC supervision. The act also permits banks to issue stablecoins only through ring-fenced subsidiaries.
Acting FDIC Chairman Travis Hill said the proposal aims to reduce unnecessary regulatory burden. However, the agency will still assess financial stability risks. According to Hill, the FDIC will balance innovation with protection of the deposit insurance fund. He also confirmed that additional rules will follow.
Public Comment Period and Next Regulatory Steps
The FDIC opened a 60-day public comment period following the board vote. During this time, stakeholders may submit feedback on the application process. After reviewing comments, the agency plans to issue a final rule.Under the proposal, applicants must submit detailed business descriptions. These include financial data, ownership structures and operational plans. FDIC counsel Nicholas Simons said applications must also include accounting engagement letters. Meanwhile, Hill stated that future proposals will address capital, liquidity, and risk management standards.
