365Crypto
FDIC lays the groundwork
US banks are one step closer to issuing stablecoins after the FDIC released a plan explaining how approvals could work. The proposal focuses on payment stablecoins backed by dollars and issued through regulated bank subsidiaries.
The framework explains how banks must apply through a separate unit rather than the main institution. The FDIC would review the bank’s finances, leadership quality, and ability to manage redemptions without breaking anything important.
Oversight takes center stage
Once approved, the FDIC would act as the main federal watchdog for these stablecoin operations. That role includes monitoring reserves, safety rules, and whether the bank can survive market stress without panic.
The agency has taken a louder voice on digital assets in recent years. It has also moved away from judging banks based on vague reputational risk, a shift welcomed by crypto-linked businesses.*
GENIUS Act changes the rules
The GENIUS Act became law last summer and created national rules for payment stablecoins. Issuers must hold one dollar in reserves for every token issued, using cash or approved liquid assets.
Crypto firms praised the law, and US officials see stablecoins as a tool to extend dollar influence worldwide. With over $300 billion already circulating, the race to issue trusted digital dollars is getting crowded.
Footing:
Stablecoin: A crypto token designed to stay equal to one dollar
Reserves: Assets held to guarantee token redemption
