- The US Federal Deposit Insurance Commission has approved a proposed rule to create the GENIUS Act application process for institutions under its oversight that intend to issue payment stablecoins.
- The Commission’s move to implement stablecoin legislation is an indisputable marker of the end of the hostile era that smothered cryptocurrency innovation.
- The FDIC has opened a 60-day period for the public to comment on the proposed rule.
The U.S. Federal Deposit Insurance Commission has formally adopted a proposal to create a path for the implementation of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) for institutions under its supervision that wish to issue payment stablecoins.
FDIC to Provide Stablecoin Issuance Pathway For Institutions Under Its Oversight
The GENIUS Act, which lays the groundwork for stablecoin regulation in the US was signed into law on July 18, 2025, and is set to take effect on January 18, 2027, or, if earlier, 120 days after primary federal payment stablecoin regulators provide final implementing regulations.
Based on the provisions of the Act, the Commission is required to receive and process applications and provide the requisite regulations guiding the application process for the institutions involved.
Consequently, the FDIC’s proposed rule will implement the federally mandated legal structure for subsidiaries of FDIC-supervised institutions to issue payment stablecoins, as well as other stablecoin activities related to institutions subject to FDIC oversight for payment stablecoin activities. The rule will explore factors such as application processing timeframes and the appeal process for denied applications.
Regulators Pivot as Stablecoins Become Too Significant to Ignore
Within the past two US federal administrations, the FDIC was found complicit in efforts to stifle digital asset innovation and the intermarriage of payment infrastructure between Wall Street and the broader cryptocurrency arena.
In January 2025, insiders tipped off pro-crypto Senator Cynthia Lummia about attempts to cover the agency’s tracks with respect to Operation Choke Point 2.0, a deliberate, concerted offensive against the crypto industry, ultimately aimed at disbanding industry leaders and firms from banking access.
Following this disclosure, the Senator drew attention to the FDIC’s alleged misconduct
while warning them to desist from attempts to block evidence and Senate intervention.
The agency’s pivot into a more acceptable stance for institutions that want to offer stablecoins underscores the effectiveness of the digital asset revolution in the US, tactfully reinforced by executive orders from President Trump, and backed by clear and comprehensive legislation.
An analyst noted that the fair regulatory efforts around stablecoins did not happen overnight. According to him, “resistance turns into regulation” when demand becomes undeniable. In addition, stablecoins did not just become safe overnight, contrary to precious regulatory assumptions. They simply became unavoidable.
Amid the decisive implementation of stablecoin legislation across board, lawmakers are also working assiduously to deliver a comprehensive digital asset market structure legislation. However, its proceedings are expected to continue in 2026.
The proposed rule by the FDIC’s Board of Directors regarding banks that intend to issue stablecoins through their subsidiaries has been opened up for public comments over 60 days.
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