Uncertainty around stablecoins in the U.S. banking system is starting to ease as regulators outline a practical path forward. This week, the Federal Deposit Insurance Corporation signaled how banks could eventually participate in payment stablecoins, marking a shift from political debate to regulatory execution.
Rather than offering broad approval, the FDIC is favoring a cautious, case-by-case approach. Banks would issue stablecoins through dedicated subsidiaries, keeping these activities ring-fenced from core banking operations while remaining under strict supervision. The focus is clearly on safety, containment, and oversight.
Regulators are prioritizing full reserve backing, transparency around reserves, and strong operational controls. Stablecoins in this framework are being treated more like regulated payment instruments than speculative crypto assets, with close scrutiny on risk management, cybersecurity, and governance.
This guidance follows the passage of the GENIUS Act, which settled the legislative question around reserves. Together, these steps signal that stablecoins are slowly being absorbed into the traditional financial system, offering banks a controlled but visible path forward.
