TechFlow, on December 17, according to The Block, the Federal Deposit Insurance Corporation (FDIC) board approved a proposed rule on December 16 to establish an application process for financial institutions issuing payment stablecoins through subsidiaries. The rule implements the Guidance and Establishment of National Innovation Using Stablecoins (GENIUS) Act passed in the summer.
FDIC General Counsel Nicholas Simons said applications must outline the proposed activity, provide a description of "subsidiary ownership and control structure," and include "engagement letters with registered public accounting firms."
FDIC Acting Chairman Travis Hill revealed that the agency plans to issue another proposed rule in the coming months to set capital, liquidity, and risk management requirements for approved subsidiary stablecoin issuers.
