On December 16, the FDIC announced the approval of an NPRM issued in the Federal Register that would establish an application process under the GENIUS Act for FDIC-supervised state nonmember banks and savings associations seeking to issue payment stablecoins through subsidiaries. The proposed rule would require applicants to submit a letter application containing: (i) a description of the proposed stablecoin and subsidiary activities; (ii) financial information including capital and liquidity plans, reserve asset composition, and three-year financial projections; (iii) a description of the subsidiary’s ownership, control structure, and details on directors and officers; (iv) policies and procedures for custody, asset segregation, recordkeeping, transaction processing, redemption, and compliance with BSA/AML and economic sanctions requirements; and (v) an engagement letter with a registered public accounting firm.

The FDIC stated, as required by the GENIUS Act (covered by InfoBytes here), it would review applications using statutory factors set out in the act, including the subsidiary’s ability to meet reserve and disclosure requirements, management integrity, and redemption policies. The rule would require the FDIC to notify applicants within 30 days if an application is “substantially complete” and would allow 120 days for a final decision. If denied, applicants could request a written or oral hearing, with the FDIC required to issue a final determination within 60 days of the hearing. Comments on the proposal must be submitted by February 17, 2026.