The U.S. Federal Deposit Insurance Corporation (FDIC) has released its first draft of rules governing the application process for issuing stablecoins.
This initiative is part of the GENIUS Act. The FDIC plans to review public comments for 60 days following the publication.
The proposal will affect depository institutions seeking to create subsidiaries for issuing dollar-backed tokens.
“The FDIC will implement a specialized application procedure to assess the safety and soundness of the applicant’s proposed activities based on statutory factors, while minimizing regulatory burden,” stated the acting chairman of the federal agency, Travis Hill.
Under the proposed application procedure, interested institutions will be required to submit letters to the agency detailing their activities, including financial information and asset backing plans.
According to Hill, another more comprehensive rule will be introduced in the coming months, setting requirements for capital, liquidity, and risk management for stablecoin issuers.
U.S. President Donald Trump signed the GENIUS Act in July. It aims to establish a legal framework for stablecoins in the country.
In December, new regulations enabled the CFTC to launch a pilot program using digital assets as collateral in derivatives markets.
