FDIC Extends Comment Period for Stablecoin Subsidiary Proposal

The FDIC extended the comment period until May 18, 2026, for a proposed rule that would establish procedures for FDIC-supervised institutions to obtain approval to issue payment stablecoins through subsidiaries. The original comment deadline was in February 2026.

The proposal would add new FDIC Rule 303.252 ("Permitted Payment Stablecoin Issuers or PPSI") to implement Section 5 of the GENIUS Act. (See previous coverage.) The proposed rule, among other things, outlines the safety and soundness criteria for evaluating applications, requires the submission of detailed financial and operational policies, and establishes a statutory timeline requiring the FDIC to approve or deny an application within 120 days of receipt.