US FDIC to propose GENIUS Act implementation framework this month

The U.S. Federal Deposit Insurance Corp. (FDIC) Acting Chair Travis Hill announced that the agency intends to propose rules this month to establish the application framework for implementing the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act). Hill stated in prepared testimony for a House Financial Services Committee hearing that a separate proposed rule covering prudential requirements for FDIC-supervised payment stablecoin issuers is expected early next year. The GENIUS Act, signed into law in July, creates a federal regulatory structure for stablecoin issuers, assigning oversight roles to various federal and state bodies, including the FDIC, which will supervise and license subsidiaries of its supervised institutions issuing stablecoins. The FDIC is also tasked with establishing capital requirements, liquidity standards, and reserve asset diversification standards for these issuers.

(Source：The Block)