The FDIC proposed a framework for regulated banks to issue payment stablecoins under the GENIUS Act, subject to public consultation. Banks must apply through a subsidiary, meeting criteria for stablecoin issuance, financial condition, and safety. Upon approval, the FDIC will oversee the subsidiary’s stablecoin activities.

The GENIUS Act, signed into law by President Trump, requires stablecoin issuers to maintain one-to-one reserve backing with USD or approved assets. The legislation was welcomed by the crypto industry, aiming to strengthen USD liquidity globally through stablecoins. The total value of stablecoins in circulation has surpassed $300 billion, mostly USD-pegged tokens.

Read more at Cointelegraph: FDIC Proposes Framework for Bank-Issued Payment Stablecoins