US banks could soon issue stablecoins under FDIC plan to implement GENIUS Act
The FDIC proposed a framework allowing bank subsidiaries to issue payment stablecoins under the recently enacted GENIUS Act.Summary
The Federal Deposit Insurance Corp. (FDIC) has released a 38-page proposal detailing the framework for how regulated banks can seek approval to issue payment stablecoins by applying through a subsidiary, marking a key step in implementing the stablecoin provisions of the GENIUS Act. The FDIC will assess the subsidiary and parent institution against criteria including financial condition, management quality, and redemption policies. If approved, the FDIC will serve as the primary federal regulator for the subsidiary's stablecoin activities. The GENIUS Act, which establishes a regulatory framework requiring one-to-one reserve backing, was signed into law in July and was generally welcomed by the cryptocurrency industry as a way to strengthen the global reach of the US dollar through stablecoins.
(Source：Cointelegraph)