The Federal Deposit Insurance Corporation (FDIC) has approved a rule under the GENIUS Act, permitting banks to issue USD-backed stablecoins. Effective December 16, the rule requires banks to hold reserves in cash or U.S. Treasury securities, aligning with broader digital asset regulatory efforts. Applications for stablecoin issuance will undergo a 30-day verification and a 120-day decision process, with automatic approval if not addressed within this timeframe.
Visa and Mastercard are set to integrate stablecoin support, with analysts predicting that annual transaction volumes could exceed $50 trillion by 2030. This regulatory development also aims to bolster Countering the Financing of Terrorism measures through enhanced oversight of digital transactions.
FDIC Approves Bank Issuance of USD Stablecoins Under GENIUS Act
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.
