FDIC Pushing for Clarity on Stablecoins and Tokenized Bank Deposits by End of 2025

The FDIC is pushing for imminent regulatory clarity on how US banks can blend stablecoins with commercial bank deposits.

At the Federal Reserve Bank of Philadelphia’s Ninth Annual Fintech Conference, acting Chairman Travis Hill said the FDIC aims to publish its initial rules on how banks can utilize stablecoins by the end of 2025.

The move follows the passage of the GENIUS act back in July.

According to Hill, the most pressing issue is setting up an application process, which is “required under the statute.”

Hill reiterated his remarks from April, saying his main goal is to ensure deposits remain deposits regardless of the technology or recordkeeping banks are using.

Hill says the FDIC is working to establish a consistent, transparent approach to oversight of banks that provide crypto and blockchain-related products and services while ensuring appropriate guardrails are in place.

Another major focus is on ensuring digital assets perform properly if a bank abruptly fails.

“We also should work to ensure that technical capabilities exist to stop the flow of funds via blockchains at the point of a bank’s failure.

Otherwise, the cost of resolving a bank could rise rapidly if counterparties, using smart contracts, are able to continue to withdraw funds at par post-failure.”

Throughout 2025, the FDIC and other US bank regulators have withdrawn restrictive statements and guidelines on crypto-asset risks and liquidity vulnerabilities, affirming banks’ authority to engage in custody, stablecoin activities and node verification.

In March of this year, the FDIC rescinded prior notification requirements and clarified that supervised banks may engage in permissible crypto-related activities including blockchain use without prior approval, treating them like other activities with risk management.

Generated Image: DALLE3