The comment period on a proposed rule issued setting procedures for insured, state-chartered nonmember banks or savings associations to seek federal approval to issue stable coins through a subsidiary is extended to May 18, the federal deposit insurer said.
The comment period extension (from Feb. 17) was announced in a Financial Institution Letter (FIL) from the Federal Deposit Insurance Corp. (FDIC). The agency issued its proposed rule in December to facilitate an approval process under the Guiding and Establishing National Innovation for U.S. Stablecoins Act, or GENIUS Act.
The FDIC said then that the GENIUS Act allows banks to issue payment stablecoins through a subsidiary and to engage in “certain related activities.”
Under the law, the FDIC is required to receive and review applications and to issue implementing regulations establishing the application process. “The proposed rule would implement the requirements of section 5 of the GENIUS Act with respect to evaluating applications based on the statutory factors, processing applications within specified timeframes, and establishing an appeal process for denied applications,” the FDIC said.
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