🚀 Stablecoins Enter a New Era: FDIC Moves Under the GENIUS Act
Big step for U.S. stablecoin regulation 👀
The FDIC has proposed a new rule that outlines how banks and their subsidiaries can apply to issue payment stablecoins under the GENIUS Act.
🔎 Key points:
🏦 Banks can apply to issue payment stablecoins
⏱️ Up to 120 days for FDIC to review applications
💵 1:1 reserves required (cash & short-term U.S. Treasuries), as mandated by the GENIUS Act
🛡️ Federal oversight — only approved Payment Stablecoin Issuers (PSSIs)
💬 60-day public comment period — rules are still being finalized
⚠️ Quick reality check:
No stablecoin has been approved yet
These stablecoins are not FDIC-insured deposits
🌍 Why this is bullish (long term):
Restores trust after past stablecoin failures
Gives banks a clear path into digital dollars & Web3 payments
Pushes the market toward fully backed, regulated stablecoins
💡 Bottom line:
The U.S. isn’t banning stablecoins — it’s building a framework for regulated ones. That’s a major signal for the future of digital payments.