FDIC Opens a New Regulatory Door for Bank-Issued Stablecoins
U.S. regulators are preparing for a future where stablecoins are no longer issued solely by crypto-native firms.
A newly proposed framework from the Federal Deposit Insurance Corporation suggests that federally supervised banks may soon be allowed to launch their own payment stablecoins – provided they clear a newly defined approval process.
Instead of granting blanket permissions, the FDIC is opting for a controlled rollout. Banks would be required to submit individual proposals explaining how their digital tokens would function, how reserves would be safeguarded, and how risks would be contained. Only after a supervisory review would issuance be allowed, signaling a cautious but notable shift in U.S. banking policy.
This proposal is one of the first tangible regulatory follow-ups to the GENIUS Act, the stablecoin legislation enacted earlier this year. The law establishes that payment stablecoins must be fully collateralized by cash or highly liquid equivalents, anchoring them firmly within the traditional financial system. However, debate continues over whether those requirements alone are sufficient as issuance scales.
Rather than positioning the framework as restrictive, FDIC leadership has framed it as flexible and adaptive. Acting Chair Travis Hill indicated that regulators want to assess risks proportionately, without turning the application process into an obstacle course that discourages participation from established lenders.
Under the draft rules, banks would need to disclose far more than just technical details. Proposed ownership structures, operational models, reserve custody arrangements, and redemption mechanics would all fall under regulatory scrutiny. External oversight would also play a role, with applicants required to involve registered accounting firms as part of the approval process.
While the framework is still theoretical, market behavior suggests banks are already laying groundwork. Major institutions, including Citigroup, have explored pilot programs and partnerships that use stablecoins for settlement and payments, hinting at how traditional finance could integrate blockchain-based money once regulatory clarity arrives.
The FDIC has also outlined how it would evaluate systemic impact. Applications would not be rejected simply due to size or novelty, but could be denied if regulators determine that a proposed stablecoin threatens financial stability or lacks adequate controls. In an unusual twist, the proposal also includes provisions that could allow applications to move forward automatically if regulatory review stalls beyond a defined timeframe.
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Ongoing oversight would not end with approval. Issuers would remain subject to capital and liquidity standards, operational risk requirements, and full compliance with anti-money-laundering and sanctions laws – effectively treating stablecoin issuance as an extension of core banking activity rather than a side experiment.
Regulators do not expect a flood of applicants right away. According to FDIC estimates, only a small number of banks are likely to apply during the early phase, potentially fewer than a dozen per year. Still, the cost and complexity of applying would be far lower than launching a new bank or acquiring a charter, making stablecoins an attractive expansion path.
From a strategic perspective, bank-issued stablecoins could alter the competitive landscape. They offer faster settlement and lower transaction costs than legacy payment systems, while also giving banks a direct response to crypto-native issuers that currently dominate the space. Developments such as regulated stablecoins expanding onto Layer-2 networks already show how demand is shifting toward compliant digital money.
The FDIC is now inviting feedback from both industry participants and the public. How that consultation unfolds will shape the final rule – and ultimately determine how quickly U.S. banks can move from experimentation to full-scale stablecoin issuance within the regulated financial system.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
