Key Highlights

• The FDIC will propose its first rules for implementing the GENIUS Act before the end of December.
• The GENIUS Act establishes the first federal oversight for stablecoins, which restricts issuance to regulated entities like bank subsidiaries
• Apart from this, FDIC Chairman Travis Hill also revealed the plan to share the regulatory status of tokenized deposits.

Acting FDIC Chairman Travis Hill stated that the agency will propose its regulations under the new GENIUS Act before December ends.

U.S. FDIC chief says first GENIUS Act regulations heading for proposal this month

— unfolded. (@cryptounfolded) December 1, 2025

This is another big moment when the leading U.S. bank deposit insurance official revealed the new development for stablecoins.

Hill made this statement in his remarks for a hearing with the House Financial Services Committee. This statement comes after the GENIUS Act became law in July of this year, after receiving support from both political parties in Congress.

What is the GENIUS Act

The GENIUS Act is the U.S.’s first comprehensive regulatory framework for USD-pegged stablecoins. Stablecoins are generally backed by safe assets like cash and government bonds.

According to the law, only specific approved companies can issue these kinds of stablecoins. These include subsidiaries of banks insured by the FDIC, institutions supervised by the Office of the Comptroller of the Currency (OCC), or state-chartered companies under regulatory oversight.

If a company issues more than $10 billion in stablecoins, it must adhere to federal regulations. Conversely, smaller companies can follow state rules if those rules are deemed robust enough by a new federal committee.

“The FDIC will be responsible for licensing and supervising subsidiaries of FDIC-supervised IDIs approved to issue payment stablecoins. The Act mandates several rulemakings, including establishing capital requirements, liquidity standards, and reserve asset diversification standards,” the document states.

What is the FDIC’s Immediate Plan

In his statement, Acting Chairman Hill provided a clear timeline. He mentioned that the FDIC has begun drafting rules to implement the GENIUS Act. The first proposed rule is anticipated to launch this month, detailing how banks can apply to create subsidiaries for issuing stablecoins.

Hill stated in the official document, “We expect to issue a proposed rule to establish our application framework later this month and a proposed rule to implement the GENIUS Act’s prudential requirements for FDIC-supervised payment stablecoin issuers early next year.”

This statement follows Hill’s speech last month, where he asserted that the agency plans to publish initial rules by year-end.

Beyond the FDIC, other regulatory bodies are proactively engaged in this effort. Federal Vice Chair for Supervision, Michelle Bowman, testified today, indicating that the Federal Reserve is developing its own set of rules for stablecoin issuer capital and liquidity as mandated by the law.

The current GENIUS Act incorporates numerous major protections resulting from extensive negotiations in Congress. This includes stringent rules aimed at preventing illicit activities like money laundering. Furthermore, advertisements for these stablecoins are prohibited from falsely claiming they are insured by the FDIC or backed by the U.S. government, with violations leading to substantial penalties.

Plans for GENIUS Act Implementation

Since the law’s signing, government agencies have been diligently working to meet its deadlines. The Treasury Department has already sought public input on detecting illegal finance and the certification of state-level rules. The law stipulates a one-year timeframe to finalize these rules, potentially leading to their enactment by April 2026.

Following the enactment of the GENIUS Act, the stablecoin market has seen a remarkable surge. Currently, the total market capitalization of stablecoins hovers around $316 billion. Major banking institutions, such as JPMorgan Chase, are already well on their way to launching their own stablecoins.

In addition to his comments about the GENIUS Act, Hill also discussed the regulatory status of tokenized deposits.

“Alongside our work under the GENIUS Act, we are also considering the recommendations of the President’s Working Group on Digital Asset Markets, which released its report in July.17 The report suggests clarifying or expanding permissible activities for banks, including the tokenization of assets and liabilities. We are currently developing guidance to provide additional clarity regarding the regulatory status of tokenized deposits,” he stated.