Travis Hill details regulatory plans for stablecoins

On December 2, Travis Hill, the acting Chairman of the FDIC Board of Directors, announced that the agency will submit its first set of GENIUS Act new rules proposal for stablecoin issuers to the House Financial Services Committee by the end of December. 

According to Hill’s statement, his prepared testimony describes future application and prudential frameworks as federal regulators attempt to regulate the stablecoin industry.

U.S. President Trump signed into law the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) in July, which created a federal regulatory framework for stablecoin issuers. Under the GENIUS Act, only licensed issuers are supposed to issue a payment stablecoin for use by U.S. individuals, subject to specific expectations and safe harbors.

According to the Congress report, permitted issuers must be either a state-qualified payment stablecoin issuer, a federal-qualified nonbank payment stablecoin issuer, or a subsidiary of an insured depository institution.

Travis Hill details regulatory plans for stablecoins

According to Hill, throughout 2025, the FDIC has taken a constructive approach with respect to banks that offer goods and services related to digital assets.  At the same time, the agency has maintained its expectations that such activities are conducted securely and soundly.

Hill stated that the FDIC will be liable for Licensing and overseeing subsidiaries of FDIC-supervised IDIs authorized to produce payment stablecoins. He mentioned that the GENIUS Act will require several rulemakings, including the establishment of capital requirements, liquidity standards, and reserve asset diversification standards.

“The FDIC has begun work to promulgate rules to implement the GENIUS Act; 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.”

Travis Hill, Acting Chairman of the FDIC Board of Directors.

Hill further stated that the FDIC is taking into account the suggestions of the President’s Working Group on Digital Asset Markets, which released its report in July, as well as its work under the GENIUS Act.

The President’s Working Group report recommends clarifying or increasing authorized activities, in which Tokenization of assets and liabilities is one activity that banks may participate in. He stated that the FDIC is currently developing regulations to provide more clarity regarding the regulatory status of tokenized deposits.

Notably, the House hearing on Tuesday will also receive testimony from other bank and credit union authorities, including the Federal Reserve. Over the last few years, whenever congressional panels have financial regulators in front of them, cryptocurrency has been a frequent topic of conversation.

Michelle, the Federal Reserve Vice Chair for Supervision, stated in her prepared testimony that the central bank was attempting “to develop capital, liquidity, and diversification regulations for stablecoin issuers as required by the GENIUS Act.”

Treasury seeks public input on GENIUS Act

Other agencies, such as the Department of the Treasury, have also been working on their portions under the GENIUS Act.

On September 18, the U.S. Department of the Treasury released an Advance Notice of Proposed Rulemaking (ANPRM). The Department of the Treasury sought public feedback regarding the Treasury’s implementation of the GENIUS Act.

According to the Treasury report, the GENIUS Act mandates the Treasury to adopt laws that stimulate innovation in payment stablecoins while providing an appropriately tailored regime to address financial stability problems.

Cryptopolitan reported that the Treasury requested that the public submit comments, including data and other information that the Treasury could find helpful. Factually, the ANPRM provides the public with an opportunity to contribute to the implementation of the GENIUS Act, even if it does not impose any new requirements. 

According to the Treasury, the ANPRM accepts comments and views from a wide variety of stakeholders.

The Treasury revealed that the ANPRM was based on the Request for Comment on Innovative methods to detect illicit activity involving digital assets, released by the Treasury on August 18, 2025. According to the Treasury, the ANPRM remained open for Comments through November 4, 2025.

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