FDIC proposes new rule for bank-issued payment stablecoins under GENIUS Act
The FDIC proposed a rule detailing how banks can seek approval to issue payment stablecoins via subsidiaries under the GENIUS Act.Summary
The Federal Deposit Insurance Corporation (FDIC) has proposed a new rule to implement the framework established by the GENIUS Act concerning bank-issued payment stablecoins. This proposal mandates that only authorized issuers can operate in the US, designating the FDIC as the primary federal regulator for eligible subsidiaries. FDIC-supervised institutions must apply to the FDIC, providing financial details for their subsidiary. The FDIC will evaluate applications based on financial soundness, management quality, and regulatory compliance, with a 30-day period to deem applications complete and 120 days for approval or denial, which requires written explanation. Denials can be appealed within 30 days, leading to a final determination within 60 days. The rule also includes a temporary safe harbor for applications submitted before the Act's effective date, allowing waivers of certain requirements for up to 12 months.
(Source：Crypto Briefing)