The Federal Reserve and the FDIC will push forward with the implementation of the GENIUS Act, and the first regulatory rules for stablecoin issuers are expected to be released in December.

According to Odaily Planet Daily, Acting Chairman Travis Hill of the Federal Deposit Insurance Corporation (FDIC) stated in his testimony to the House Financial Services Committee that the FDIC expects to release its first set of regulatory proposals for stablecoin issuers in December to implement the National Stablecoin Innovator Guidance and Establishment Act (GENIUS Act). The initial rules will clarify the process for stablecoin issuers to apply for federal regulation, followed by prudential requirements for FDIC-regulated payment stablecoin issuers early next year, including capital standards, liquidity requirements, and reserve asset quality oversight.

The FDIC and other agencies, including the Treasury Department, are advancing their respective regulatory responsibilities under the GENIUS Act. The rules will undergo a public comment period before officially taking effect. Hill also stated that the FDIC is developing further guidance on the regulatory status of "tokenized deposits" based on recommendations from the President's Working Group on Digital Asset Markets.

The hearing will also reportedly include testimony from the Federal Reserve and other financial regulatory agencies. Michelle Bowman, Vice Chair for Supervision at the Federal Reserve, stated that the Fed is developing a regulatory framework for stablecoin issuers, covering capital, liquidity, and risk diversification, in accordance with the GENIUS Act. (CoinDesk)