The Federal Deposit Insurance Corporation (FDIC) has released its first proposed rule under the GENIUS Act, marking a key step toward integrating stablecoins into the U.S. banking system.
The proposal, issued on December 16, 2025, sets out a formal approval pathway for FDIC-supervised banks that want to issue stablecoins through regulated subsidiaries.
This is the first concrete regulatory output following the GENIUS Act’s passage earlier this year.
A New Approval Path For Bank-Issued Stablecoins
The proposed rule establishes how state nonmember banks and state savings associations supervised by the FDIC can apply to become a Permitted Payment Stablecoin Issuer (PPSI).
Rather than creating a broad licensing regime, the FDIC focuses on process. Banks must submit a detailed application explaining how a stablecoin would be issued, managed, and redeemed. The regulator is seeking clarity upfront on reserves, capital strength, liquidity planning, governance structure, and anti-money-laundering controls.
The framework is designed to standardize approvals while maintaining supervisory oversight.
Built-In Timelines And Appeals
One of the most notable features is a 120-day decision deadline. If the FDIC does not act within that window, a complete application would be automatically approved, a mechanism intended to prevent regulatory delays.
For banks that receive a rejection, the proposal introduces a formal hearing and appeals process, giving applicants a defined route to challenge decisions.
The rule has entered a 60-day public comment period following publication in the Federal Register.
Only The First Step Under The GENIUS Act
The FDIC stressed that this proposal addresses procedural approval only. More substantive regulations are still coming.
Acting FDIC Chairman Travis Hill confirmed that a separate rule covering capital, liquidity, and risk-management standards for stablecoin issuers is expected in early 2026. In parallel, the agency is drafting guidance on how existing banking rules apply to tokenized deposits, which are being treated separately from stablecoins.
GENIUS Act Sets The Guardrails
The GENIUS Act, signed into law in July 2025, created the first comprehensive federal framework for stablecoins in the United States. It requires issuers to maintain 1:1 backing with safe, liquid assets and to publicly disclose reserve composition.
The law also bars stablecoin issuers from paying interest and from suggesting any form of federal insurance or government guarantee.
With this initial FDIC proposal, the regulatory architecture for bank-issued stablecoins is beginning to take shape, signaling a shift from policy debate to practical implementation.
