FDIC Moves on Stablecoins as Congress Market Structure Bill Stalls

The Federal Deposit Insurance Corporation (FDIC) on Tuesday proposed its first rule under the GENIUS Act, setting out how FDIC-supervised banks could apply to issue dollar-backed payment stablecoins through subsidiaries. 

The move marks the first concrete regulatory implementation of the landmark stablecoin law signed in July, and signals that regulators are prepared to move forward even as lawmakers on Capitol Hill hit pause on wider crypto legislation.

Regulators take the lead

Under the proposal, state-chartered banks supervised by the FDIC would be required to submit a tailored application if they want to issue payment stablecoins via a subsidiary. 

The process would allow the agency to assess safety and soundness, governance, reserve management and redemption policies, while limiting additional regulatory burden by relying on information banks already provide.

Acting FDIC Chair Travis Hill said the approach is designed to implement the GENIUS Act efficiently while maintaining prudential oversight. The proposal focuses narrowly on the criteria laid out in statute, including capital, liquidity, reserve disclosures and management integrity, rather than reopening broader policy debates.

The rule is subject to a 60-day public consultation and would be followed by further proposals covering capital, liquidity and risk-management requirements for approved stablecoin issuers. 

Regulators are required to finalize key elements of the GENIUS framework by mid-2026.

Congress hits the brakes

The FDIC’s move comes just a day after the Senate Banking Committee reportedly delayed marking up its long-awaited crypto market structure bill until the New Year. 

The legislation, which aims to clarify the division of authority between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), had been widely expected to advance before the end of the year.

Instead, negotiations have dragged on, with lawmakers citing unresolved concerns around financial stability, market integrity and political sensitivities. 

The delay leaves the GENIUS Act as the only major piece of crypto legislation enacted in 2025, narrowing near-term legal clarity to stablecoins rather than the wider digital-asset market.

That has left regulatory announcements as the primary reference point for firms operating in the sector.

Two-track regulatory future?

The contrast highlights a growing divergence in US crypto policymaking. 

While Congress struggles to reach consensus on comprehensive market rules, regulators are using existing mandates and recently passed laws to shape the sector incrementally.

The FDIC’s proposal offers a clearer pathway into stablecoins for banks at a time when institutional interest in tokenized money, onchain settlement and blockchain-based payments is accelerating.

Together, the developments suggest that the US is moving toward a piecemeal regulatory framework, with stablecoins governed by statute and agency rulemaking, while the rest of the crypto market awaits lawmakers to resolve their differences in 2026.