Application Procedures for Board-Supervised Insured Depository Institutions Seeking Approval for a Subsidiary To Issue Payment Stablecoins
Key claim: The Federal Reserve would create a formal application process that insured state member banks must follow to get Board approval for a subsidiary to issue payment stablecoins under the GENIUS Act.
Abstract
(Proposed Rule · Federal Reserve System) 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 Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act).
Why this matters
This proposal would make the Federal Reserve the gatekeeper for state member banks whose subsidiaries want to issue payment stablecoins, slotting the Fed into the GENIUS Act’s inter-agency stablecoin architecture alongside the OCC, FDIC, NCUA, FinCEN, OFAC, and Treasury. It is procedural rather than substantive — it does not change who is eligible to issue — but it determines the paperwork, timing, and supervisory conditions through which Fed-supervised banks can enter the stablecoin market.