Regulatory Alerts2025-12-19 | 2025-23510Approval Requirements for Issuance of Payment Stablecoins by Subsidiaries of FDIC-Supervised Insured Depository Institutions
The Federal Deposit Insurance Corporation proposes a tailored application process enabling FDIC-supervised state banks and savings associations to secure approval for subsidiaries to issue payment stablecoins under the GENIUS Act. The rule outlines specific filing procedures and evaluation criteria that prioritize safety and soundness, financial capacity to maintain 1-to-1 reserve backing, management competence, and clear consumer redemption policies. Upon finalization, the framework will designate approved subsidiaries as permitted payment stablecoin issuers subject to statutory timelines, reserve disclosure mandates, and a formal appeal mechanism for denied applications.
Share