(Dec 17): The Federal Deposit Insurance Corp (FDIC) is proposing a framework that outlines how banks would be able to apply to issue payment stablecoins via a subsidiary, a key first step from the agency towards implementing landmark legislation.
The plan, which is subject to public consultation before it can be finalised, would spell out how certain lenders can apply in order to get the regulator’s nod. Acting chair Travis Hill said in a statement the “tailored” process would allow the FDIC to evaluate the safety and soundness of an applicant’s proposed activities.
President Donald Trump in July signed the Genius Act, which requires stablecoin issuers to formally register and hold dollar-for-dollar reserves. Hill told lawmakers previously the FDIC expects to issue another proposal early next year that would implement prudential requirements for some payment stablecoin issuers.
The FDIC board is currently comprised of only Republicans.
Special assessment
The FDIC also moved on Tuesday to adjust the amount that banks pay to cover the losses tied to the 2023 systemic-risk exception. US officials’ decision to declare that exception and cover all deposits at Silicon Valley Bank and Signature Bank had cost the government’s bedrock Deposit Insurance Fund billions of dollars.
See also: Visa offers stablecoin settlement for US banks using Circle’s USDC
The new rule would lower the amount lenders will pay in the first quarter of 2026.
Uploaded by Felyx Teoh
