The Federal Reserve and the FDIC will advance the implementation of the GENIUS Act, with the first set of regulatory rules for stablecoin issuers expected to be announced in December

The acting chairman of the Federal Deposit Insurance Corporation (FDIC), Travis Hill, stated in testimony submitted to the House Financial Services Committee that the FDIC expects to launch its first set of regulatory proposals for stablecoin issuers to implement the "Generating Environments Needed for Innovation in US Stablecoins Act" (GENIUS Act). The initial rules will clarify the process for stablecoin issuers to apply for federal regulation, followed by the release of prudential requirements for FDIC-regulated payment stablecoin issuers early next year, including capital standards, liquidity requirements, and reserve asset quality supervision.

The FDIC, along with the Treasury Department and other agencies, is advancing relevant regulatory responsibilities under the GENIUS Act. The rules will undergo a public comment phase and will only take effect after review. Hill also mentioned that the FDIC is developing further guidance on the regulatory status of "tokenized deposits" based on recommendations from the President's Working Group on Digital Assets. It is reported that this hearing will also hear testimonies from other financial regulatory agencies, including the Federal Reserve. Federal Reserve Vice Chair Michelle Bowman also stated that the Fed is developing a regulatory framework for stablecoin issuers regarding capital, liquidity, and risk diversification as required by the GENIUS Act.