FDIC proposes new rule for bank-issued payment stablecoins under GENIUS Act

The Federal Deposit Insurance coverage Company (FDIC) has proposed a brand new rule to implement the GENIUS Act framework for bank-issued stablecoins for funds. Beneath the proposal, solely approved stablecoin issuers would be capable to function within the US.

The framework supplies a personalized utility course of, establishes analysis standards and timelines, and contains an appeals mechanism, designating the FDIC as the first federal regulator for eligible subsidiaries.

Establishments supervised by the FDIC that want to difficulty steady fee cash via their subsidiary should apply to the FDIC. Candidates should additionally present monetary details about the subsidiary, in addition to further data if requested.

The FDIC would overview functions for monetary soundness, administration high quality and regulatory compliance. The company has 30 days to contemplate functions full and should approve or deny them inside 120 days, with denials defined in writing.

Candidates might enchantment denials via a 30-day listening to request and obtain a ultimate choice inside 60 days.

The proposal supplies a brief secure harbor for functions filed earlier than the efficient date of the GENIUS Act, permitting waivers from sure statutory necessities for as much as twelve months.

The FDIC is searching for public touch upon the rule’s data assortment necessities.