FDIC Moves to Propose First GENIUS Act Rules in December

• FDIC to publish GENIUS Act application framework for stablecoin issuers in December.
• Federal Reserve is developing capital, liquidity, and diversification rules for issuers.
• Treasury sought public feedback and closed comments on its GENIUS Act implementation.

Acting FDIC Chair Travis Hill is preparing to issue the first proposed rules under the GENIUS Act. Hill outlined the plan in a testimony scheduled for a December House Financial Services Committee hearing, where he stated the agency aims to set an application framework for stablecoin issuers. The announcement follows President Donald Trump’s July signing of the law, which created a federal oversight regime for payment stablecoins.

FDIC Sets Timeline for Application

Hill said the FDIC started drafting rules required under the Guiding and Establishing National Innovation for U.S. Stablecoins Act. He confirmed the agency intends to release the application framework before December ends, creating a starting point for issuers seeking federal supervision. 

This proposal moves first because it establishes the structure for how issuers enter the system. The FDIC will then change focus early next year to prudential rules for payment stablecoin issuers supervised by the agency. 

Hill noted these rules will cover capital requirements, liquidity obligations, and reserve asset diversification standards required for regulated issuers. His testimony states that federal and state regulators will share responsibilities under the law, meaning coordination will influence each stage of implementation.

That coordination includes other banking regulators testifying at the hearing, such as the Federal Reserve, the Office of the Comptroller of the Currency, and the National Credit Union Administration. 

Their participation offers a broader view of the federal approach, which extends across multiple agencies. This multi-agency structure sets the background for a long implementation process that includes public comment periods.

GENIUS Act Efforts

As the FDIC prepares its initial proposal, the Federal Reserve is developing its own GENIUS Act responsibilities. According to prepared remarks from Federal Reserve Vice Chair for Supervision Michelle Bowman, the central bank is working on capital, liquidity, and diversification rules for stablecoin issuers. 

Her comments show the shared mandate embedded in the law, which directs different agencies to handle distinct regulatory layers. The Department of the Treasury is also advancing its tasks under the statute. 

Treasury launched an Advance Notice of Proposed Rulemaking on September 18 to gather public feedback on its implementation approach. The agency closed its comment window on November 4, following an earlier request for input on ways to detect illicit digital asset activity. 

Treasury said it aims to support stablecoin innovation while addressing financial stability risks through a tailored regulatory regime. Hill’s testimony shows how these similar processes will shape the broader rollout. 

He explained that federal rulemaking requires proposals to remain open for public comment before any final rules appear. This step ensures stakeholders provide feedback on each component of the new system. After reviewing comments, regulators finalize the rules, a stage that often takes months.

Related: FDIC Builds Framework for Blockchain-Based Bank Deposits

FDIC Prepares Guidance on Tokenized Deposits

Hill also addressed another priority linked to digital asset policy. He said the FDIC is developing guidance to clarify the regulatory status of tokenized deposits. This work follows recommendations from the President’s Working Group on Digital Asset Markets, which published its report in July. 

The report urged regulators to clarify or expand authorized banking activities, including tokenization of assets and liabilities. The FDIC continues reviewing how banks introduce digital asset services while ensuring they meet supervisory expectations. 

Hill said the agency’s digital asset approach in 2025 focused on constructive engagement with institutions offering related products. However, he noted the FDIC maintained strict expectations for secure and sound operations. This approach now extends into its GENIUS Act responsibilities, which require formal rules and long-term oversight.

The House hearing featuring Hill, Bowman, and other regulators continues a recent pattern in Congress. Crypto issues repeatedly appear when financial regulators testify, showing ongoing scrutiny of digital asset markets. Each agency’s update provides lawmakers with insight into how implementation of the GENIUS Act will progress through 2025.

Hill’s testimony outlines the FDIC’s plan to release its first GENIUS Act proposal by December’s end, with prudential rules following early next year. Other regulators, including the Federal Reserve and Treasury, continue advancing their responsibilities under the same law. Their combined work positions the federal government to build a coordinated framework for U.S. payment stablecoin oversight.