🤑 Banks to Mint Money? FDIC’s GENIUS Act Unveils Stablecoin Saga 🤑

by

In a world where money whispers and regulations roar, the FDIC has birthed a framework under the GENIUS Act, allowing banks to dabble in the art of issuing payment stablecoins through their offspring subsidiaries.

Ah, the Federal Deposit Insurance Corp., that venerable guardian of financial decorum, has taken a bold step into the digital abyss. With a flourish of bureaucratic quills, they’ve proposed a framework for banks yearning to join the stablecoin circus. A move, one might say, that is less about restriction and more about erecting a scaffold for the inevitable acrobatics of digital payments. 🌪️

A 38-Page Odyssey: FDIC’s Stablecoin Manifesto for Banks

According to Bloomberg, the FDIC has unfurled a 38-page tome on its digital altar, detailing how bank subsidiaries may seek the holy grail of stablecoin issuance. A public consultation period, they say, will follow-a democratic gesture before the rulemaking juggernaut rolls on. 📜

The plan, a labyrinth of customized applications, promises to grant some lenders the privilege of regulatory approval. Acting FDIC Chair Travis Hill, with a straight face, assures us this approach balances safety and soundness without smothering innovation. A delicate dance, indeed, tailored to the peculiar risks of stablecoin shenanigans. 💃

Related Reading: SBI Holdings and Startale Advance Plans for a Regulated Yen Stablecoin | Live Bitcoin News

The proposal, unveiled on December 16, 2025, opens a 60-day window for public commentary-a brief interlude for industry titans and stakeholders to voice their musings. Thereafter, the FDIC shall ponder revisions before marching onward with regulatory zeal. ⏳

Under this framework, insured depository institutions may don the mantle of stablecoin issuers through their subsidiaries. The FDIC, ever the arbiter, grants 30 days to deem applications complete and 120 days to render judgment. Efficiency, they claim, is the name of the game. ⚖️

GENIUS Act: A License to Coin, Not a Free-for-All

Behold, an automatic approval mechanism! Should the FDIC tarry beyond 120 days, the application shall be deemed approved. A stroke of genius, perhaps, to spare qualifying institutions from the clutches of bureaucratic delay. 🕰️

Yet, this proposal fixates on application rituals, leaving operational standards for a later decree. Hill hints at a forthcoming rule on capital, liquidity, and risk management-a prudent coda to this financial symphony. 🎻

All this unfolds under the aegis of the GENIUS Act, a legislative masterpiece that outlaws rogue stablecoin issuance. Only the anointed-permitted domestic issuers or registered foreign entities-may partake in this digital alchemy. 🧙♂️

The Act, ever vigilant, mandates strict reserve requirements. Stablecoin issuers must hoard high-quality liquid assets, a one-to-one mirror of their digital progeny. Monthly reports, too, shall be their lot, a sacrifice to the altar of transparency. 📊

And lest we forget, the Act forbids issuers from enticing stablecoin holders with interest. A stern decree, indeed, with regulatory duties parceled out among agencies. The FDIC, for its part, watches over subsidiaries of state non-member banks, while the Treasury Department lends its weight with an advance notice of proposed rulemaking in September 2025. 🏛️

Read More

2025-12-17 09:19