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The FDIC is requesting comment on a proposal that would implement requirements under section 4 of the Guiding and Establishing National Innovation for U.S. Stablecoins Act applicable to FDIC-supervised permitted payment stablecoin issuers. The proposed rule is intended to address capital requirements, liquidity risk management standards, reserve assets, principles-based operational and compliance standards, and other matters.

Statement of Need:

The GENIUS Act establishes a framework for issuance and regulation of payment stablecoins.  The FDIC plans to issue rules regarding application processes for banks that wish to establish payment stablecoin issuing subsidiaries and prudential requirements for banking institutions engaged in stablecoin issuance.  Anticipated costs are undetermined; however, the FDIC expects the benefits to institutions to outweigh the regulatory costs involved in applying to operate a stablecoin subsidiary.

Summary of the Legal Basis:

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Alternatives:

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Anticipated Costs and Benefits:

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Risks:

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