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FDIC Proposes Application Procedures for Banks Issuing Payment Stablecoins

"This proposed rule is the FDIC's first action to implement the GENIUS Act."
Travis Hill, Acting Chair, FDIC
"This proposed rule is the FDIC's first action to implement the GENIUS Act."
Travis Hill, Acting Chair, FDIC

The FDIC proposed a rule to "establish a tailored application process for an FDIC-supervised institution to obtain approval from the FDIC to issue payment stablecoins through a subsidiary."

The proposed rule would implement Section 5 under the Guiding and Establishing National Innovation for U.S. Stablecoins Act ("GENIUS Act") by establishing procedures for evaluating applications based on statutory factors, "processing applications within specified timeframes and [creating] an appeal process" for denied applications.

The proposed rule provides sections on "scope, definitions of key terms, filing location requirements," required contents of applications, procedures for requesting additional information, processing timelines for decisions, "hearing and appeal procedures and standards for final determinations."

Comments are due 60 days after publication in the Federal Register.

 

Primary Sources

  1. FDIC: Speeches: Proposed Rule Regarding Approval Requirements for Issuance of Payment Stablecoins by Subsidiaries of FDIC-Supervised Insured Depository Institutions
  2. FDIC: Press Releases: FDIC Approves Proposal to Establish GENIUS Act Application Procedures for FDIC-Supervised Institutions Seeking to Issue Payment Stablecoins
  3. FDIC: Notice of Proposed Rulemaking: Approval Requirements for Issuance of Payment Stablecoin by Subsidiaries of FDIC-Supervised Insured Depository Institutions

Tags

Regulated Entities
Banking Entities
Regulated Products
Digital Assets
Body of Law
Banking Law
Jurisdiction
US - Federal
Organization
US Banking Regulators
Sub-Author
FDIC