FDIC Approves Rule for Banks to Issue Stablecoins Through Subsidiaries Under GENIUS Act (60-Day Public Comment Period)

COINOTAG News reports that the FDIC has advanced a proposed rule to create an application process for banks to issue stablecoins through subsidiaries. The proposal opens a 60-day public comment period and follows the passage of the GENIUS Act, also known as the American Stablecoin Innovation Act.

Exposing a formal issuance pathway, the rule emphasizes prudential safeguards, with criteria on governance, risk controls, and capital considerations for banks issuing stablecoins through subsidiaries.

This step could improve market transparency around reserve management and redemption workflows, aiding investors and entities seeking regulated access to crypto-native payments within a bank-backed framework.

During the 60-day window, regulators will gather feedback from stakeholders before any final rule, aligning with the GENIUS Act‘s objective to foster innovation while maintaining financial stability.