FDIC Proposes Framework for U.S. Banks to Issue Payment Stablecoins
- U.S. banks may soon apply to issue payment stablecoins under a new FDIC proposal.
- The framework aligns with the GENIUS Act, which mandates stablecoins be fully backed by fiat or liquid assets.
- Applications must detail ownership models, operational strategies, and reserve management procedures.
- The FDIC will assess risks but aims not to impose excessive burdens on applicants.
- Future supervision will include capital and liquidity standards along with compliance with anti-money laundering laws.
This initiative represents a significant regulatory advancement for stablecoin issuance in the U.S., providing a structured path for banks under federal oversight. The FDIC’s focus on safety and soundness is crucial as major lenders like Citigroup explore stablecoin applications.
With this framework, U.S. banks could begin issuing payment stablecoins, pending approval based on outlined risk assessments and operational plans.(Source)
