The Federal Deposit Insurance Corporation, the U.S. agency that insures bank deposits, is preparing rules for stablecoins issued through bank subsidiaries, even though it currently supervises zero issuers in that category.
The proposal, approved by the FDIC board on May 22, applies to stablecoin issuers owned by FDIC-supervised state banks or state savings associations, after they receive FDIC approval to issue payment stablecoins.
- It doesn't directly cover the broader stablecoin market led by non-bank issuers such as Tether or Circle.
The FDIC estimates that five to 30 FDIC-supervised banks could apply for and receive approval to issue payment stablecoins through subsidiaries in the first few years after the law takes effect.
- The proposal is required by the GENIUS Act, the U.S. stablecoin law that creates a federal framework for payment stablecoins.
- President Donald Trump signed the GENIUS Act into law on July 18, 2025, creating the first U.S. federal framework for payment stablecoins. However, its core stablecoin rules haven't taken effect yet.
- The law takes effect on Jan. 18, 2027, or 120 days after federal stablecoin regulators issue final implementing rules, whichever comes first.
The freeze button
The proposal would require FDIC-supervised stablecoin issuers to follow rules on money laundering, terrorism financing and sanctions. That includes requirements from FinCEN, the U.S. Treasury unit that handles financial-crime reporting, and OFAC, the Treasury office that enforces U.S. sanctions.
As the FDIC says, some issuers may also need systems that can "block, freeze, or reject transactions" when required by sanctions law or legal orders.
The FDIC explains that the goal is to "combat illicit finance risk" while supporting the "responsible growth and use of digital assets and related technologies in the banking sector."
The cost estimate is low, for now
The FDIC says the new rule shouldn't add much cost because these stablecoin issuers would be subsidiaries of banks and would likely use existing compliance systems.
The agency estimates 10 issuers would each need about 40 hours in the first year to set up recordkeeping, reporting and other disclosure systems, putting the total first-year cost at about $45,000 for 10 issuers, or $135,000 if 30 issuers were approved in one year.
The proposal doesn't say which FDIC-supervised state banks may apply or which stablecoins they might issue.
- Some large U.S. banks, including JPMorgan Chase, Bank of America, Citigroup and Wells Fargo, have reportedly explored a joint stablecoin.
- World Liberty Financial, a Trump family-backed crypto venture, has also applied to the Office of the Comptroller of the Currency for a national trust bank tied to stablecoin operations.