The US FDIC is pushing forward with the implementation of the GENIUS Act, proposing a framework for stablecoin applications.
TL;DR
The FDIC has approved a proposed rule to create an application process for financial institutions issuing stablecoins via subsidiaries, as part of the GENIUS Act. It requires details on activities, ownership, and accountant engagement, with further rules on capital and risk management expected soon.
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According to Foresight News , the Federal Deposit Insurance Corporation (FDIC) board approved a proposed rule on December 16th to establish an application process for financial institutions issuing payment stablecoins through subsidiaries. This rule is an implementing part of the GENIUS Act passed this summer. FDIC legal counsel Nicholas Simons stated that applications need to outline the proposed activities, provide a description of the subsidiary's ownership and control structure, and include a letter of engagement with a registered public accountant. FDIC Acting Chairman Travis Hill revealed that the agency plans to release another proposed rule in the coming months to establish capital, liquidity, and risk management requirements for approved subsidiary stablecoin issuers.
According to a previous report by Foresight News , citing CoinDesk, Acting Chairman Travis Hill of the FDIC plans to announce at a hearing of the House Financial Services Committee that the FDIC will propose the first implementation rules of the GENIUS Act by the end of December, establishing a regulatory framework for stablecoin issuers' applications.