Application Procedures for Board-Supervised Insured Depository Institutions Seeking Approval for a Subsidiary To Issue Payment Stablecoins
Why this matters
This is a notice of proposed rulemaking (NPRM) from the Federal Reserve implementing the GENIUS Act's application procedures for insured State member banks seeking Board approval for subsidiaries to issue payment stablecoins. The proposal establishes substantive new licensing requirements, procedural rules, and evaluation criteria (including safety/soundness, reserve backing, capital/liquidity, AML/sanctions compliance, and technological capability). The 62-day comment period (ending 11/30/2026) and 120-day decision timeline indicate this is a significant regulatory initiative affecting banks' ability to enter the stablecoin market. While still in proposed form, it carries high urgency for affected institutions and payment providers.
AI-generated classification rationale, not a full analysis. Verify with the original Federal Reserve source before acting. Full disclaimer.
What the Federal Reserve said
Notice of proposed rulemaking. The Board of Governors of the Federal Reserve System (Board) proposes to issue regulations that would establish procedures to be followed by an insured State member bank that seeks to obtain Board approval for a subsidiary to issue payment stablecoins pursuant to the Guiding and…
Extract from Federal Reserve . Read the full notice at the source for the authoritative text.
Context
Board of Governors of the Federal Reserve System (Federal Reserve) — The US central bank and supervisor of bank holding companies and state member banks. We track 92 updates from them.
US financial regulation is overseen by multiple agencies including the SEC, CFTC, Federal Reserve, OCC and FDIC. Browse all United States updates.
This update is classified under Authorisation & Licensing, Prudential / Capital Requirements, AML / Financial Crime and Banking & Credit.