In what could be a major regulatory step, U.S. banks could soon be allowed to issue payment stablecoins under a new framework proposed by the Federal Deposit Insurance Corp. (FDIC).
The proposal would allow banks to apply for the issuance of stablecoins through their subsidiaries. This is, however, subject to approval by regulatory authorities. The plan will be subject to public consultation before being finalized. Overall, the plan describes how the FDIC would evaluate applications.
The regulator mainly focuses on safety and soundness. Acting Chairman Travis Hill said the process would give the agency the flexibility to assess the risks of each proposal.
What does this policy entail?
This decision comes after several regulatory advances in the United States. Notably, President Donald Trump signed the Genius Act in July. The law requires stablecoin issuers to officially register and maintain reserves dollar for dollar. With the law in effect, the focus has shifted from Congress to regulators. Currently, agencies are beginning to define how the rules will be enforced.
The FDIC proposal would require bank subsidiaries issuing stablecoins to demonstrate their ability to meet monthly reserve requirements. The proposed rule also requires these companies to publicly disclose the details of these reservations.
The agency would also assess capital and liquidity standards. Per the FDIC document, the regulator will assess both operational and technological risks. The FDIC would also conduct extensive background checks on senior management. The aim is to determine whether these individuals have a history of financial crimes.
Hill said the framework is only a first step. Authorities plan to introduce further proposals in 2026 to impose broader requirements on certain stablecoin issuers.
