The FDIC proposed to establish rules related to the stablecoin application framework to advance the implementation of the GENIUS Act

According to The Block, the Federal Deposit Insurance Corporation (FDIC) is moving forward with implementing parts of the stablecoin legislation that became law this summer.

On Tuesday, the FDIC board approved a proposed rulemaking notice that sets an application process for institutions to issue payment stablecoins through subsidiaries. The agency is soliciting public comments on this proposed rule. During the board meeting, FDIC legal counsel Nicholas Simons stated that the application must clearly outline the scope of the proposed activities, provide a description of the "subsidiary ownership and control structure," and include "a letter of engagement with a registered public accounting firm." Simons said, "In summary, the proposed rule will enable the FDIC to assess the safety and soundness of the proposed payment stablecoin activities while minimizing the regulatory burden on applicants."

This summer, President Trump signed the GENIUS Act, which created a federal regulatory framework for stablecoins. Earlier this month, FDIC Acting Chair Travis Hill informed lawmakers that the agency plans to release the implementation framework for the GENIUS Act in the coming weeks. On Tuesday, he also stated that the agency plans to issue a proposed rule in the coming months to establish capital, liquidity, and risk management requirements for approved subsidiary stablecoin issuers.