The FDIC board unanimously approved stablecoin regulation with a 3-0 vote on May 24, 2026, opening a 60-day public comment period. Under the GENIUS Act, the framework extends Bank Secrecy Act anti-money laundering requirements to stablecoin issuers affiliated with state banks. The FDIC anticipates the regulatory era will begin in mid-2027, with 5 to 30 banks projected to apply for issuance licenses in the first years.
FDIC stablecoin regulation framework
▪The Federal Deposit Insurance Corporation (FDIC) approved a new regulatory proposal requiring banks in the United States that issue stablecoins to comply with anti-money laundering (AML) regulations equivalent to those imposed on traditional financial institutions.
▪The FDIC stablecoin regulation extends anti-money laundering and sanctions compliance programs mandated under the Bank Secrecy Act (BSA) to any companies issuing stablecoins as subsidiaries of state banks overseen by the FDIC.
▪The FDIC stablecoin regulation mandates reporting and compliance with sanctions programs as outlined by the Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Assets Control (OFAC).
▪The FDIC gains authority to supervise whether stablecoin issuers are adhering to anti-money laundering rules and to impose penalties when necessary under the new stablecoin regulation proposal.
Bank Secrecy Act requirements
▪FDIC Chairman Travis Hill questioned whether banks' substantial resource allocation to meet Bank Secrecy Act requirements meaningfully supports law enforcement or national security.
▪Banks often opt to close customer accounts or reject new applications due to hefty penalties for violating the Bank Secrecy Act.
▪Stablecoin issuers affiliated with banks will be required to take on comprehensive responsibilities to prevent financial crimes under the Bank Secrecy Act.
GENIUS Act implementation
▪Under the GENIUS Act, the FDIC has been appointed as the primary supervisory and regulatory authority for stablecoin issuers affiliated with banks.
▪The Office of the Comptroller of the Currency (OCC) released its own regulatory proposal for stablecoin issuers in 2026.
▪The FDIC had previously introduced detailed requirements for application processes, reserve asset management, and redemption standards for banks aiming to issue stablecoins under the GENIUS Act.
▪The FDIC stablecoin regulation marks the FDIC's third major regulatory move under the GENIUS Act.
▪The GENIUS Act requires all federal banking regulators to develop similar rules for stablecoin issuers.
AML compliance modernization
▪The FDIC, the Office of the Comptroller of the Currency (OCC), and the National Credit Union Administration are preparing a proposal designed to modernize the anti-money laundering framework.
▪The modernized anti-money laundering approach would direct regulators to focus oversight resources on customers with higher risk profiles, rather than those with lower risks.
Public comment period
▪The public has been granted a 60-day period to submit feedback on the FDIC stablecoin regulation proposal following its release.
▪The FDIC board unanimously approved the stablecoin regulation with a 3 to 0 vote on May 24, 2026.
Regulatory timeline projections
▪Projections suggest that between 5 and 30 banks may apply for stablecoin issuance licenses in the first years after the GENIUS Act takes effect.
▪The FDIC anticipates the new stablecoin regulatory era will begin in mid-2027.
Perspective of FDIC Chairman Travis Hill
▪Banks often opt to close customer accounts or reject new applications due to hefty penalties for violating the Bank Secrecy Act.
▪FDIC Chairman Travis Hill questioned whether banks' substantial resource allocation to meet Bank Secrecy Act requirements meaningfully supports law enforcement or national security.
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