FDIC proposes first stablecoin regulations under GENIUS Act

The U.S. Federal Deposit Insurance Corporation (FDIC) has announced its first official regulatory proposal for stablecoins under the GENIUS Act. According to CoinDesk, the proposal focuses on establishing procedures for FDIC-supervised depository institutions, or banks, to create subsidiaries for issuing stablecoins. Acting FDIC Chairman Travis Hill stated that this initial rule on application procedures will be followed in the coming months by more substantive regulations setting capital, liquidity, and risk management requirements for these subsidiaries. CoinNess previously reported that the FDIC was expected to release its draft regulations under the U.S. stablecoin law by the end of this month.