FDIC proposes approval procedures for bank-subsidiary stablecoin issuance

What changed

The FDIC proposed application and approval procedures for FDIC-supervised banks and savings associations seeking to issue payment stablecoins through subsidiaries under the GENIUS Act.

Who it affects

• FDIC-supervised institutions, stablecoin subsidiaries, reserve custodians, investment advisers, and clients

What is still open

• Final approval criteria, timing, conditions, and interaction with later prudential standards

What it means for an advisor

• Map proposed application, governance, capital, liquidity, reserve, operational, and supervisory requirements when diligencing bank-issued stablecoins.