The U.S. Federal Deposit Insurance Corporation (FDIC) is moving swiftly to implement the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. Acting Chairman Travis Hill has revealed that the agency intends to introduce comprehensive regulations for stablecoin issuers by December 2025. This initiative represents a significant advancement in bringing federal regulation to payment stablecoins, a sector that has operated with limited oversight despite its increasing influence in digital finance.
Source: Coindesk
According to Hill’s testimony before the House Financial Services Committee, the FDIC’s new framework will center on licensing and supervising subsidiaries of insured banks that wish to issue stablecoins. The regulations will require issuers to meet strict standards for capital, liquidity, and reserve diversification in order to reduce systemic risks. Hill stressed the importance of encouraging innovation while maintaining the stability of the financial system, especially as stablecoins become more integral to international payments and tokenized asset platforms.
Stablecoins are increasingly vital for cross-border transactions and digital asset ecosystems.
Enacted in July 2025 under President Donald Trump, the GENIUS Act limits stablecoin issuance to approved entities, such as state-licensed issuers or subsidiaries of banks. The FDIC’s forthcoming rules will outline the application process for these organizations, ensuring they adhere to robust risk management practices. For example, issuers will be obligated to maintain reserves equal to 100% of their stablecoin liabilities and diversify those reserves to avoid concentration risks. The agency also plans to clarify expectations for banks involved in tokenized deposits, building on recommendations from the President’s Working Group on Digital Asset Markets.
The President’s Working Group has previously examined the regulatory challenges of asset tokenization.
Collaboration with other federal bodies is a cornerstone of the FDIC’s strategy. The U.S. Treasury has already invited public feedback through an Advance Notice of Proposed Rulemaking (ANPRM) to help shape the GENIUS Act’s rollout. Released in September 2025, the ANPRM seeks to balance the encouragement of innovation with the need to address risks like financial crime and instability. At the same time, the Federal Reserve is crafting its own set of rules regarding capital and liquidity, reflecting a unified regulatory approach to stablecoins.
The Federal Reserve is also working on parallel guidelines for stablecoin issuers.
The FDIC’s schedule aligns with a broader regulatory push. By early 2026, the agency expects to finalize requirements, including mandates for diversified reserves to prevent failures similar to the TerraUSD collapse in 2022. Hill reaffirmed the FDIC’s dedication to ensuring that banks offering digital asset services operate safely and soundly, echoing the agency’s supervisory priorities for 2025.
Maintaining secure operations for banks in the digital asset space remains a top priority for the FDIC.
While the FDIC’s efforts have been met with approval from many in the industry, experts caution that the effectiveness of the new rules will depend on their details—such as how reserves are structured and what capital levels are required. Some fintech companies warn that stringent regulations could give larger banks an advantage, potentially limiting opportunities for smaller firms.
As the regulatory process unfolds, stakeholders are encouraged to participate in the public comment period and stay informed about any adjustments to the proposed rules. The FDIC’s December proposal will kick off a thorough review, with final regulations expected to be phased in over time. This proactive stance marks a significant step toward a more mature and secure regulatory landscape for stablecoins in the United States.