FDIC proposes application process for banks issuing stablecoin

The Federal Deposit Insurance Corporation unveiled a proposed rule that would establish a formal approval process for banks and savings institutions seeking to issue stablecoins through their subsidiaries. The move stems from a new authority granted under the GENIUS Act, which Congress approved earlier this year.

Under the proposal, banks and savings institutions would have to file applications outlining the stablecoin they intend to issue and detailing the subsidiary’s planned activities. The filings would also need to include financial information about the subsidiary, its ownership and governance structure, and key policies and customer agreements covering areas such as custody and safekeeping. In addition, applicants would be required to provide an engagement letter with a registered public accounting firm.

Comments on the proposal are due 60 days after publication in the Federal Register.