In what could be a major regulatory landmark, US banks could soon be allowed to issue payment stablecoins under a new framework proposed by the Federal Deposit Insurance Corp. (FDIC)
The proposal would enable banks to apply for the issuance of stablecoins through their subsidiaries. This, however, is subject to regulatory approval. The plan will undergo public consultation before being finalized. Overall, the plan outlines how the FDIC would assess applications.
The regulator has a primary focus on safety and soundness. Acting Chair Travis Hill said the process would give the agency flexibility to evaluate the risks tied to each proposal.
What Does This Policy Involve?
The move comes after several regulatory progresses in the US. Notably, President Donald Trump signed the Genius Act in July. The law requires stablecoin issuers to register formally and maintain dollar-for-dollar reserves. With the law in place, attention has shifted from Congress to regulators. Currently, agencies are beginning to define the enforcement of the rules.
The FDIC’s proposal reportedly requires bank subsidiaries issuing stablecoins to demonstrate their ability to meet monthly reserve requirements. The proposed rule also requires these firms to publicly disclose the details of those reserves.
The agency would also assess capital and liquidity standards. As per the FDIC’s document, the regulator will evaluate both operational and technology risks. The FDIC would further carry out in-depth background checks on members of senior management. The goal is to ascertain if these individuals have a history of financial crimes.
Hill has indicated that the framework is only a first step. Authorities plan to introduce further proposals in 2026 to launch broader requirements for certain stablecoin issuers.
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