The U.S. crypto industry no longer has to wait for any developments. The Federal Deposit Insurance Corporation recently proposed new rules that take crypto out of its historical “Wild West” period. FDIC is poised to unveil its first concrete regulations for stablecoin issuers before the month is out.
According to prepared testimony set to be delivered Tuesday before the House Financial Services Committee, FDIC Acting Chairman Travis Hill will confirm that the agency is ready to “promulgate rules” to implement the landmark GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act). For an industry that has long clamored for regulatory clarity, the timeline is tighter than many expected: the first proposal is dropping in December.
The Timeline: Applications First, Rules Second
“The FDIC has begun work to promulgate rules to implement the GENIUS Act,” Hill states in his prepared remarks. “We expect to issue a proposed rule to establish our application framework later this month.”
This means that before the year 2025 closes, stablecoin issuers—from crypto-native giants to traditional banks—will finally see the roadmap for how to apply for federal oversight. However, the actual “rules of the road” regarding safety and soundness will trail slightly behind. Hill noted that the proposal implementing the Act’s “prudential requirements”—which cover capital reserves, liquidity, and risk management—is scheduled for release “early next year.”
The FDIC appears to be taking a sequential approach in order to ensure that the application submission process is established prior to determining what specific operational requirements all approved issuers will be required to satisfy.
The GENIUS Framework: A New Era
In July 2025, President Donald Trump signed the GENIUS Act into law, establishing a single regulatory framework for the previously fragmented crypto market. In particular, the Act regulates stablecoins and requires stablecoin issuers (companies that issue digital currency backed by the U.S. dollar) to register with federal regulators and to hold one U.S. dollar for every stablecoin they issue.
With respect to regulating stablecoins, the Act sets a federal regulatory floor, which is achieved through the combined authority of state and federal regulatory agencies. As for the FDIC, the agency has a specific regulatory responsibility in maintaining stability in the financial system by ensuring that there is no systemic risk to the broader banking system. Essentially, if you want to issue a digital dollar that interacts seamlessly with the U.S. banking system, you now have to play by the FDIC’s rules.
Tokenized Deposits: The “Other” Digital Dollar
Hill’s testimony also sheds light on a critical distinction the agency is making between “stablecoins” and “tokenized deposits.” The definition of a stablecoin is that it is usually issued from an external party and operates on a public blockchain. It is important to note, however, that the term “tokenised deposit” refers to a digital representation of money that is held directly with a bank.
Hill revealed that the FDIC is “currently developing guidance to provide additional clarity with respect to the regulatory status of tokenized deposits.” This follows recommendations from a report by the President’s Working Group on Digital Asset Markets released earlier this year. For commercial banks looking to upgrade their plumbing without launching a full-blown stablecoin, this guidance could be the green light they’ve been waiting for.
The Fed Weighs In
The FDIC isn’t working in isolation. The hearing on Tuesday will also feature testimony from Federal Reserve Vice Chair for Supervision Michelle Bowman, who confirmed that the central bank is moving in lockstep with the FDIC.
“We are currently working with the other banking regulators to develop capital, liquidity, and diversification regulations for stablecoin issuers as required by the GENIUS Act,” Bowman said in her prepared remarks. Her comments underscore a unified federal front: the days of regulatory arbitrage, where crypto firms could shop around for the most lenient regulator, appear to be numbered.
What Comes Next?
For the industry, the release of the proposed rules later this month is just the starting gun. As with all federal rulemaking, the proposal will be open to a public comment period, likely lasting several months. This gives industry lobbyists, consumer advocates, and tech experts a chance to scrutinize the fine print and argue for changes before a final version is adopted.
However, the message from Washington is clear: 2026 will be the year of compliance. With the application framework arriving in weeks and capital requirements following shortly after, the infrastructure for a regulated U.S. stablecoin market is finally being poured.
