FDIC Prepares to Release the First Rulebook Under the GENIUS Act: A Turning Point for Stablecoins in the U.S

As stablecoins play an increasingly critical role in the digital asset ecosystem, the United States’ official passage of the GENIUS Act in 2025 marks a transformative milestone. However, the law itself serves only as a broad framework; the detailed implementation rules are what will ultimately determine how the market operates. This is why the latest announcement from the FDIC (Federal Deposit Insurance Corporation) is so significant: before the end of December, the FDIC will release the first set of regulations to implement the GENIUS Act, focusing primarily on establishing a federal licensing process for stablecoin issuers.

This development is seen as the “opening shot” for the entire U.S. stablecoin regulatory system. It not only represents the debut of the first official rulebook, but also lays the foundation for a series of additional regulations set to roll out throughout the following year. For the crypto industry, this announcement signals that the U.S. has entered a new phase—shifting from cautious oversight toward substantive regulation, and formally recognizing stablecoins as an integral part of the nation’s financial infrastructure.

1. The first rulebook will focus on the licensing process for stablecoin issuers

The draft that the FDIC is set to publish this month will function as a “regulatory handbook” for organizations — including private companies and financial service providers — seeking federal approval to become licensed Stablecoin Issuers under the GENIUS Act. This is something the market has lacked for years, forcing stablecoins to rely on scattered state-by-state rules, which limited their ability to scale and manage risk effectively.

The rulebook is expected to include detailed guidance on the following:

▪ Application and evaluation process

The FDIC will outline:

• How organizations must submit their applications
• The level of information required
• The criteria used to assess eligibility
• Expected processing timelines

This gives applicants a clear understanding of what standards they must meet before being allowed to issue stablecoins.

▪ Corporate governance requirements

Stablecoin issuers must demonstrate:

• A board of directors with proper ethical standards and financial competence
• A comprehensive risk-management framework
• Strong capabilities in managing reserve assets
• A professional compliance department

These requirements ensure stablecoins are operated by entities with the skills, accountability, and legal responsibility to manage consumer funds safely.

▪ Reserve and collateral standards

The GENIUS Act mandates that stablecoins must be backed 1:1 by:

• U.S. dollars (cash)
• Short-term U.S. Treasury bills
• Highly liquid, ultra-low-risk assets

The FDIC will release a specific list of approved and prohibited reserve assets, effectively eliminating all high-risk stablecoin models from the market.

▪ Audit mechanisms and transparency obligations

Stablecoin issuers will be required to:

• Publish regular reserve disclosures
• Allow independent third-party audits
• Report risks directly to regulators
• Publicly disclose the terms for token ⇄ USD redemption

This framework ensures users can trust that their tokens are genuinely and fully backed at all times.

2. Regulations for banks issuing stablecoins will be introduced next year

While the first rulebook focuses on non-bank stablecoin issuers, the FDIC has confirmed that early next year it will release a separate set of standards specifically for banks that want to issue stablecoins.

This set of rules is more sensitive, because when banks directly issue stablecoins, the concerns go far beyond simple 1:1 backing and extend into core issues of financial-system stability:

▪ Stability of the banking system

Bank-issued stablecoins could become large-scale financial products, potentially affecting a bank’s liquidity and balance sheet. The FDIC must ensure that stablecoin issuance does not create risks similar to a “bank run,” where sudden mass redemptions jeopardize the bank’s financial health.

▪ Strict capital requirements

Banks issuing stablecoins will be required to:

• Maintain additional regulatory capital
• Preserve extra liquidity buffers
• Ensure they can meet redemption requests immediately

This ensures that stablecoin operations never become a burden on the bank’s financial position or a source of systemic contagion.

▪ Technology risk controls

Bank-issued stablecoins must comply with extremely strict technical and security standards, including:

• Cybersecurity protections
• Smart-contract security
• Operational resilience and error prevention

Because banks are core pillars of the economy, any technical failure involving a stablecoin could create widespread ripple effects.

3. The coordinated roles of the FDIC, the Federal Reserve, and the U.S. Treasury in implementing the GENIUS Act

The GENIUS Act is only the starting signal. The actual operation, enforcement, and integration of stablecoins into the U.S. financial system depend on coordinated oversight from three major federal agencies:

FDIC – The primary regulator and supervisory authority

The FDIC will:

• Evaluate and license stablecoin issuers
• Oversee stablecoin operations
• Examine reserves, transparency, and liquidity
• Impose penalties or revoke licenses in cases of violations

Essentially, the FDIC acts as the “inspection and certification authority” for every stablecoin operating under federal standards.

Federal Reserve – Managing systemic impact and monetary policy implications

The Federal Reserve is responsible for ensuring that stablecoins do not disrupt the broader U.S. financial system. Its responsibilities include:

• Ensuring stablecoins do not undermine the Fed’s control of the money supply
• Monitoring impacts on interbank payment systems
• Assessing systemic risk
• Evaluating effects on interest rates and capital-market liquidity

If stablecoins become large enough, they could directly influence the flow of USD throughout the economy — a key concern for the Fed.

U.S. Treasury – Compliance, oversight, and financial-crime prevention

The Treasury Department will define and enforce:

• AML/KYC standards
• Anti–terrorism financing rules
• Large-transaction reporting requirements
• Cross-border capital flow monitoring mechanisms

These measures ensure that stablecoins are not exploited for illicit activities and remain compatible with national and international security standards.

4. The regulatory process will take time due to the public comment requirement

The FDIC’s release of the first rulebook this month is only the beginning of a lengthy and complex legal process. In the United States, federal regulations cannot be enacted immediately. They must follow the strict governance framework of the Administrative Procedure Act (APA). This ensures that every important regulation — especially those related to finance and emerging technologies like stablecoins — is examined thoroughly from multiple perspectives before taking effect.

The process consists of four main stages:

1. Publication of the Proposed Rule

This is the stage where the FDIC presents the full regulatory framework, including:

• Objectives
• Scope of application
• Technical requirements
• Legal obligations
• Safety standards
• Supervisory mechanisms

The proposed rule often includes a cost-benefit analysis to evaluate the impact on all relevant stakeholders.

2. Public Comment Period

This stage typically lasts between 30 and 120 days, depending on complexity. During this period, the following groups may submit comments:

• Large financial institutions
• Stablecoin issuers
• Banks
• Legal experts
• Small businesses
• Individual users

For a system-level regulation such as stablecoin oversight, the comment period may attract hundreds or even thousands of responses — ranging from requests to relax reserve requirements to warnings about systemic risk or the impact on technological innovation.

3. Review, analysis, and adjustment of the rule

The FDIC must:

• Read all submitted comments
• Summarize areas of agreement and disagreement
• Adjust provisions that are unclear or impractical
• Provide a transparent explanatory report

This is usually the longest phase because the FDIC must demonstrate the rationality, feasibility, and legality of each regulatory clause.

For stablecoins — which intersect with banking risk, liquidity, digital assets, AML/KYC, and monetary policy — this analysis and revision stage is expected to be especially complex.

4. Publication of the Final Rule

Only when the Final Rule is issued does the regulation acquire legal force. At that point, organizations can:

• Apply for stablecoin issuance licenses
• Register under federal standards
• Issue legally compliant stablecoins in the U.S.

In many cases, an additional 6–18 months may be required for full implementation after the Final Rule takes effect.

Estimated overall timeline

From the publication of the proposed rule to the final enforcement of the regulation, the full process can take:

• Around 6 months (in the fastest possible scenario)
• 12–18 months (typical timeline)
• Over 18 months (if public debate is extensive)

The key point for financial markets is this: the FDIC is initiating the regulatory process, not concluding it.

Still, the fact that the process has begun is already a strong signal that the U.S. is moving toward the legalization and standardization of stablecoins.

5. Broad impacts on the crypto market and the future of stablecoins

The United States — home to the world’s largest financial system and the strongest fiat currency — adopting an official regulatory framework for stablecoins carries implications far beyond the crypto industry. It produces wide-ranging economic, technological, and geopolitical effects.

Below is a deeper analysis of each impact:

▪ Stronger legitimacy and increased confidence in stablecoins

Until now, stablecoins operated in a legal gray zone, creating worries around:

• reserve transparency
• redemption reliability
• bankruptcy risk
• lack of supervision

With the FDIC, Federal Reserve, and U.S. Treasury jointly overseeing the sector, stablecoins transition from being “private tech products” to becoming an official component of the U.S. financial system.

This legitimization will:

• Strengthen trust among large investors
• Reduce fear of regulatory uncertainty
• Bring more liquidity into on-chain markets

This foundation is essential for long-term, stable growth.

▪ Significant inflows from traditional financial institutions

Once legalized, stablecoins can become:

• B2B payment instruments
• Tools for international money transfers
• Infrastructure for bank-integrated decentralized finance
• Digital reserve assets for corporations

Clear rules allow major institutions like Visa, Mastercard, JPMorgan, PayPal, Stripe, Fidelity, and others to:

• issue their own stablecoins
• integrate stablecoins into payment systems
• use stablecoins for internal liquidity management

With institutional adoption, the total stablecoin market could expand from hundreds of billions to trillions of dollars in the coming decade.

▪ Enhanced user and market safety

The GENIUS Act mandates strict 1:1 backing and periodic audits, designed to prevent collapses like UST, the temporary USDC depeg, or other algorithmic stablecoin failures.

Under FDIC supervision:

• Users can trust that each token is redeemable for $1
• Institutions will feel safe using stablecoins at scale
• The crypto market will experience fewer systemic shocks

This is especially important for businesses and applications that require high reliability.

▪ Encouraging healthy competition and technological innovation

A clear regulatory framework enables a wide range of market participants — including:

• banks
• fintech companies
• crypto firms
• payment platforms
• international financial providers

— to compete fairly and transparently.

This competition drives innovation such as:

• high-speed settlement stablecoins
• tokenized bank assets
• on-chain payment systems for enterprises
• stablecoin-powered international trade

The more participants involved, the faster and more diverse the stablecoin ecosystem becomes.

▪ The U.S. could lead the global stablecoin race

Today, more than 90% of all stablecoins worldwide are pegged to the U.S. dollar. This means:

USD is already the dominant currency of the blockchain economy.

With the U.S. establishing clear standards:

• other nations will need to align
• USD stablecoins will become the global benchmark
• international businesses will choose USD stablecoins for settlement

This creates a massive strategic advantage for the U.S. in global currency competition, especially as China promotes e-CNY and Europe implements MiCA.

If executed effectively, the GENIUS Act could position the United States as the world leader in digital finance — just as it has dominated traditional finance in the 20th and 21st centuries.

CONCLUSION

The FDIC’s preparation to release the first set of rules under the GENIUS Act is not merely a legal milestone—it is a clear signal that the United States is proactively shaping the future of stablecoins within the global financial system. By moving stablecoins out of a regulatory gray zone and into a framework that is clear, transparent, and auditable, the entire digital asset industry is positioned to enter a phase of true maturity.

This initial rulebook — even in draft form — will establish the foundation for how stablecoin issuers operate for years to come. Meanwhile, the forthcoming regulations for banks, expected early next year, will ignite a new wave of competition between traditional financial institutions and existing crypto companies. This competition will fuel innovation while simultaneously raising safety standards for users.

Although the finalization of these regulations may take many months—or even over a year—the crucial point is that the United States has officially begun the process. As the world’s largest financial market formulates a comprehensive standard for stablecoins, the impact will extend far beyond its borders. It will influence international markets, lawmakers, corporations, and the numerous blockchain ecosystems that rely on USD-backed stablecoins.

What began as a grassroots solution within the crypto community is evolving into a core component of future financial infrastructure. The GENIUS Act — along with the FDIC’s forthcoming rulebooks — may well serve as the first foundational stones in this major transformation.

Disclaimer:The information provided here is for informational purposes only and should not be considered financial, investment, legal, or professional advice. Always conduct your own research, consider your financial situation, and, if necessary, consult with a licensed professional befo