FDIC Moves to Formalize How Banks Can Issue Stablecoins Under GENIUS Act
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The FDIC proposed a formal approval process for banks to issue payment stablecoins under the GENIUS Act, established to ensure safety, full reserves, and strict redemption requirements. Only FDIC-supervised banks can issue these stablecoins, placing stablecoin issuance firmly within the traditional banking system, which could impact the crypto market's infrastructure.
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- FDIC proposes a formal approval process for banks seeking to issue payment stablecoins.
- Only FDIC-supervised banks can issue stablecoins through approved subsidiaries.
- Rules focus on safety, full reserves, and strict redemption requirements.
U.S. regulators are tightening the rules around who gets to issue stablecoins, and how. On December 16, the Federal Deposit Insurance Corporation approved a proposed rule that explains how banks must apply to issue payment stablecoins under the GENIUS Act, a law passed earlier this year to bring stablecoins under federal oversight.
Rather than opening the door to crypto-native firms, the proposal places stablecoin issuance firmly inside the traditional banking system.
Stablecoins have grown into an important piece of crypto market infrastructure, handling billions of dollars in daily transactions. But regulators worry that w…
Read The Full Article FDIC Moves to Formalize How Banks Can Issue Stablecoins Under GENIUS Act On Coin Edition.
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