United States of America: Federal Deposit Insurance Corporation opened consultation on approval requirements for issuance of payment stablecoins by subsidiaries of insured depository institutions

On 19 December 2025, the Federal Deposit Insurance Corporation (FDIC) opened a consultation on the approval requirements for the issuance of payment stablecoins by subsidiaries of insured depository institutions until 18 May 2026. The proposed rule applies to insured State non-member banks and State savings associations seeking to issue payment stablecoins through subsidiaries under the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act). The rule would add a new section 303.252 requiring applicants to submit detailed information, including descriptions of the proposed stablecoin and subsidiary activities, financial information, ownership structures and organising documents, relevant policies and procedures, and an engagement letter with a public accounting firm. The FDIC must notify applicants within 30 days whether applications are substantially complete and must approve or deny substantially complete applications within 120 days, with applications deemed approved if not decided within this timeframe. The FDIC will evaluate applications based on statutory factors, including the subsidiary's ability to meet GENIUS Act requirements, management competence and criminal history, redemption policy adequacy, and safety and soundness considerations. Approved permitted payment stablecoin issuers may issue and redeem payment stablecoins, manage reserves, provide custody services, and engage in digital asset service provider activities, but must maintain reserves on at least a one-to-one basis.