WASHINGTON--At its Tuesday Board meeting, the Federal Deposit Insurance Corporation issued a notice of proposed rulemaking for FDIC-regulated institutions to issue stablecoins through subsidiaries, America's Credit Unions reported.
The rulemaking is required by the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act.
The law creates a regulatory framework for stablecoins and allows a credit union service organization to serve as an appropriate subsidiary entity to issue stablecoins.
NCUA Chairman Kyle Hauptman followed the FDIC’s announcement by posting on LinkedIn that the “credit union version” of the proposed rule is “coming soon,”ACU noted.
The FDIC’s proposal would establish a tailored application process for FDIC-supervised institutions to obtain approval from the FDIC to issue payment stablecoins through a subsidiary. It contains an overview of factors the FDIC will use when evaluating applications and technical details on filing applications.