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Washington, D.C., December 2, 2025
In a move that sent crypto markets surging Tuesday, Acting FDIC Chairman Travis Hill told the House Financial Services Committee that the agency will publish its long-awaited proposed stablecoin oversight framework before the end of December 2025, the first concrete regulatory action under President Trump’s landmark GENIUS Act.
The announcement marks the clearest signal yet that the United States is racing to capture global leadership in dollar-based digital assets, with industry analysts projecting more than $150 billion in new compliant stablecoin issuance within the first 18 months of full implementation.
Key Takeaways
- The FDIC will release its first GENIUS Act proposal before December 31, 2025, the fastest major crypto rulemaking in U.S. history.
- 100% Treasury-backed reserves will create structural new demand for U.S. government debt, potentially lowering borrowing costs by tens of billions annually.
- Banks can now issue tokenized deposits with explicit FDIC backing, leveling the playing field against nonbank giants.
- $150 billion+ in new compliant issuance is considered a conservative 2026–2027 estimate; upside scenarios exceed $300 billion.
- Public comment period begins immediately upon publication, final rules likely effective late 2026.
Background: From Campaign Promise to Law in Six Months
Signed by President Trump on July 17, 2025, the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act created the country’s first federal licensing and supervisory regime for payment stablecoins.
The bipartisan legislation, passed with unusual speed, restricts issuance to FDIC-supervised bank subsidiaries, state-licensed nonbanks, or federally chartered entities, while mandating 100% reserve backing in short-term U.S. Treasuries, cash, or repurchase agreements.
The stablecoin market has already responded: total market capitalization jumped from $200 billion in July to $309 billion today, according to CoinGecko data.
What the FDIC Framework Will Cover
Hill’s prepared testimony, obtained by multiple outlets, outlines three core pillars set for the December proposal:
- Ironclad Reserve Requirements: 1-for-1 backing exclusively in U.S. dollars, Treasury bills, or overnight repos, effectively turning every new compliant stablecoin into automatic demand for U.S. government debt.
Treasury Secretary Scott Bessent has publicly estimated this could reach $3 trillion by 2030.
- Bank-Grade AML and KYC: Issuers will fall under full Bank Secrecy Act enforcement, with transaction monitoring and suspicious-activity reporting aligned with the Treasury’s August 2025 advance notice of proposed rulemaking.
- Seamless Bank Integration: New guidance will clarify that stablecoins issued by FDIC-supervised subsidiaries qualify as insured tokenized deposits, a regulatory green light for banks to compete directly with Circle (USDC) and Tether.
Full prudential standards on capital, liquidity, and diversification are slated for a second rulemaking in Q1 2026.
Industry Reacts: “This Is the Catalyst We’ve Waited Four Years For”
“This isn’t just regulation, it’s an invitation,” said Dante Disparte, Chief Strategy Officer at Circle. “Federal clarity means every major bank can now launch or partner on stablecoins without fear of enforcement whiplash.”
Analysts at AInvest and the Bank for International Settlements project the U.S. compliant segment alone could hit $450–500 billion by 2027, dwarfing today’s offshore-dominated market.
Conclusion
For the first time since the invention of stablecoins in 2014, the United States is building a regulatory superhighway rather than a wall.
With the FDIC’s December framework, the GENIUS Act is transforming stablecoins from regulatory gray-zone experiments into the on-ramp for trillions in tokenized real-world assets.
As one committee staffer put it off-record:
“This is the moment the dollar goes fully digital, and stays the world’s reserve currency for another century.”
Read Next:
- Rise Stablecoin Payroll Review 2026
- Stablecoins on Bitcoin
- The Neobank Transition Report: Stablecoin Effects on Banking
FAQs:
1. When exactly will the FDIC publish the first GENIUS Act rules?
Acting Chairman Travis Hill confirmed the proposed application framework will be released for public comment before December 31, 2025, with prudential standards to follow in early 2026.
2. Who can issue stablecoins under the new federal framework?
Only FDIC-supervised bank subsidiaries, federally chartered nonbank issuers, or state-licensed entities that meet strict capital and compliance thresholds.
3. Are the reserves really required to be 100% in U.S. Treasuries?
Yes, exclusively cash, FDIC-insured deposits, Treasury bills (≤93 days), or overnight reverse repos collateralized by Treasuries. No commercial paper, corporate bonds, or crypto allowed.
4. Will existing issuers like Circle and Tether have to comply immediately?
They have an 18-month transition window to either obtain a federal or state license under GENIUS or wind down U.S.-facing operations.
5. How much new Treasury demand could this create?
Conservative estimates peg $1–3 trillion in additional T-bill purchases by 2030 as compliant stablecoins scale, effectively giving the Treasury a captive buyer base larger than Japan and China combined.
