Travis Hill details regulatory plans for stablecoins

On December 2, 2025, Travis Hill, Acting Chairman of the Federal Deposit Insurance Corporation (FDIC), announced the upcoming submission of the first set of proposals for new GENIUS Act rules for stablecoin issuers. These proposals will be submitted to the House Financial Services Committee by the end of December, highlighting the importance of regulation in the rapidly evolving digital asset industry.

What is the GENIUS Act?

The GENIUS Act, the Regulating and Creating a National Innovation for Stablecoins in the United States Act (GENIUS Act), was signed into law by U.S. President Donald Trump in July 2025. This law created a federal regulatory framework for stablecoin issuers, marking a significant step toward regulating and overseeing this rapidly growing part of the financial sector.

Under the GENIUS Act, only licensed issuers may issue payment stablecoins for use by individuals in the United States. This means that issuers must comply with certain requirements and operate within safe havens, ensuring user protection and financial system stability.

Issuer Classification

According to the Congressional report, permitted stablecoin issuers can be:

- Federal payment stablecoin issuers
- Federally licensed non-bank payment stablecoin issuers
- Subsidiaries of insured depository institutions

This classification creates a clear framework for those wishing to participate in the issuance of stablecoins and ensures that only reliable and reputable organizations can offer such financial products.

FDIC's Approach to Regulation

Travis Hill noted that through 2025, the FDIC has maintained a constructive approach to banks offering digital asset-related products and services. The agency strives to ensure that such activities are conducted safely and soundly, which is key to maintaining confidence in the financial system.

FDIC Responsibilities

Hill also stated that the FDIC will be responsible for licensing and supervising FDIC-regulated subsidiaries authorized to issue payment stablecoins. This includes the need to adopt a number of regulations, such as:

- Establishing capital requirements
- Liquidity standards
- Reserve diversification standards

These measures are aimed at ensuring financial stability and protecting the interests of stablecoin users.

In Conclusion

Travis Hill's plans to regulate stablecoins under the GENIUS Act represent an important step toward creating a secure and transparent environment for the use of digital assets. By introducing new rules and requirements, the FDIC aims to ensure that the stablecoin market develops according to high standards of security and reliability. This, in turn, may contribute to increased trust in stablecoins and their wider adoption in the US financial system.