The U.S. Federal Deposit Insurance Commission (FDIC) has officially approved a proposal that establishes a framework for the implementation of the Guiding and Establishing National Innovation for U.S. Stablecoins Act, commonly referred to as the GENIUS Act. This new rule is critical as it opens the door for financial institutions under FDIC supervision to issue payment stablecoins.
With the adoption of this proposal, the FDIC marks a significant shift in its regulatory approach, moving away from previous stances that hindered cryptocurrency innovation. The Commission has launched a 60-day public comment period on the proposed rule, inviting feedback from the community.
The GENIUS Act, which was signed into law on July 18, 2025, is set to become effective on January 18, 2027, or potentially sooner, depending on the issuance of final regulations by key federal payment stablecoin regulators. The act mandates that the FDIC process applications from institutions wishing to engage in stablecoin issuance, thereby providing a clear regulatory framework for these entities.
The proposed rule will not only facilitate the issuance of payment stablecoins but will also address other related activities that institutions under FDIC oversight may engage in. It outlines important aspects such as the timeframes for application processing and the appeal process for applications that may be denied.
This regulatory pivot comes as stablecoins have become an essential part of the financial landscape, prompting a change in approach from the FDIC. In recent years, the agency faced criticism for its role in stifling digital asset innovation, particularly during the Operation Choke Point 2.0 initiative, which aimed to restrict banking access for cryptocurrency firms. Senator Cynthia Lummis highlighted these issues, urging the FDIC to cease obstructive practices.
The FDIC”s move to embrace stablecoin regulation signifies the growing recognition of the importance of digital assets, reinforced by executive orders from former President Trump and supported by comprehensive legislation. An analyst remarked that the transition from resistance to regulation is often a response to undeniable demand within the market.
As lawmakers continue to work on a broader digital asset market structure, expectations are set for further developments in 2026. For now, the FDIC has opened the floor for public commentary on its proposed rule, marking a new chapter in the evolution of stablecoins in the U.S.
