The U.S. FDIC advances the implementation of the GENIUS Act and proposes framework rules for stablecoin applications

According to Foresight News, the Board of Directors of the U.S. Federal Deposit Insurance Corporation (FDIC) approved a proposed rule on December 16 to establish an application process for financial institutions to issue payment stablecoins through subsidiaries. The rule is an implementation part of the GENIUS Act passed this summer. The application needs to outline the proposed activities, provide a description of the "ownership and control structure of the subsidiary," and include a "letter of engagement with a registered public accounting firm," FDIC counsel Nicholas Simons said. FDIC Acting Chairman Travis Hill revealed that the agency plans to issue another proposed rule in the coming months to establish capital, liquidity and risk management requirements for approved subsidiary stablecoin issuers.

Foresight News previously reported that, according to CoinDesk, Acting Chairman of the U.S. FDIC, Travis Hill, plans to announce at a hearing of the House Financial Services Committee that the FDIC will propose the first batch of implementation rules of the GENIUS Act before the end of December to establish a regulatory framework for stablecoin issuers to apply.

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