The U.S. Federal Deposit Insurance Corporation (FDIC) plans to unveil a framework for stablecoin legislation, according to acting chair Travis Hill. During an upcoming session with the House Financial Services Committee, Hill will share the FDIC’s strategy for the implementation of the GENIUS Act this month.

“The FDIC has begun work to promulgate rules to implement the GENIUS Act; we expect to issue a proposed rule to establish our application framework later this month,” Hill stated in his prepared testimony.

In addition, Hill mentioned that a proposed rule concerning capital and liquidity standards for FDIC-supervised stablecoin payment issuers would be presented early next year.

In July, President Donald Trump signed the GENIUS Act, which established a licensing system overseen by the FDIC for stablecoin-issuing subsidiaries of various institutions.

The FDIC’s responsibilities include insuring deposits from failing banks, and the new regulatory framework will add capital requirements and standards for liquidity and reserve assets for stablecoin issuers.

Travis Hill appearing before the Senate Banking Committee for his nomination hearing to be FDIC chair. Source: Senate Banking Committee

Federal agencies such as the FDIC are open to public feedback on their proposed rules and will refine the final versions based on this input. This process can span several months.

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The Treasury is also involved in regulating certain non-bank stablecoin issuers and has begun implementing the GENIUS Act, completing another public comment period last month.

FDIC Developing Guidelines for Tokenized Deposits

Hill revealed that the FDIC is considering suggestions made in a report by the President’s Working Group on Digital Asset Markets, which was released in July.

“The report recommends clarifying or expanding permissible activities in which banks may engage, including the tokenization of assets and liabilities,” Hill added.

The agency is also crafting guidance for the regulatory status of tokenized deposits.

Fed Collaborating on Stablecoin Regulations

Michelle Bowman, vice chair of supervision at the Federal Reserve, will testify that the central bank is collaborating with other banking regulators to establish regulatory frameworks for capital, liquidity, and diversification in accordance with the GENIUS Act.

“We also need to provide clarity in treatment on digital assets to ensure that the banking system is well placed to support digital asset activities,” she stated.

Links to Hearings: The House Finance Committee will also hear from leaders of the Office of the Comptroller of the Currency and the National Credit Union Administration, who will both contribute to the implementation of stablecoin regulations.

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