U.S. financial regulators are advancing concrete steps to implement the country's landmark stablecoin law, with the Federal Deposit Insurance Corporation (FDIC) preparing to propose its framework later this month.

In prepared testimony for a House Financial Services Committee hearing on Tuesday, FDIC Acting Chair Travis Hill announced the agency will issue a proposed rule to establish an application framework for stablecoin issuers under the GENIUS Act—signed into law by President Donald Trump in July—by the end of November. A second proposal outlining prudential requirements for FDIC-supervised issuers, including capital, liquidity, and reserve standards, is expected early next year.

Multi-Agency Oversight Takes Shape
The GENIUS Act created a coordinated regulatory regime, dividing oversight among several agencies:

• The FDIC will regulate stablecoin-issuing subsidiaries of the banks it supervises and insure related deposits.
• The Treasury Department began its implementation in August and recently concluded a second public comment period for rules covering non-bank issuers.
• The Federal Reserve is collaborating with banking regulators to develop the required standards, according to prepared remarks from Vice Supervision Chair Michelle Bowman.
• The Office of the Comptroller of the Currency and the National Credit Union Administration will also play roles, as highlighted by their participation in Tuesday’s hearing.

Focus on Tokenization and Clarity
Hill also indicated the FDIC is developing guidance on tokenized deposits, responding to recommendations from the President’s Working Group on Digital Asset Markets to clarify permissible bank activities involving asset and liability tokenization.

Bowman echoed the need for clarity, stating that regulators must ensure “the banking system is well placed to support digital asset activities” by providing clear permissibility guidelines and feedback on new use cases.

Path to Implementation
The rulemaking process will include periods for public comment, review, and revision—a timeline that typically spans months before final rules are published. This structured approach aims to create a comprehensive and secure environment for payment stablecoins, integrating them into the federally supervised financial system while addressing risks related to stability, consumer protection, and financial integrity.

The hearing underscores a significant phase in U.S. crypto regulation, as agencies transition from legislative direction to enforceable frameworks for digital assets.