Today in crypto: The US Federal Deposit Insurance Corp. proposed a framework under the GENIUS Act for banks seeking to issue payment stablecoins. In the UK, regulators launched consultations on new crypto rules, while industry executives pressed the US financial watchdog to rethink its stance on privacy tools.
US banks could soon issue stablecoins under FDIC plan to implement GENIUS Act
The Federal Deposit Insurance Corp. (FDIC) is moving forward with rule-making under the US GENIUS Act by proposing a framework for how regulated banks could apply to issue payment stablecoins, a key early step in implementing the law’s stablecoin provisions.
In a 38-page document posted to the FDIC’s website, the agency detailed proposed approval requirements for the issuance of payment stablecoins by subsidiaries of FDIC-supervised institutions.
As Bloomberg reported, the proposal is subject to a public consultation period before advancing to the next stage of the rulemaking process.
Under the proposal, banks would apply to issue payment stablecoins through a subsidiary, with the FDIC assessing both the subsidiary and its parent institution against criteria set out in the GENIUS Act. These include the ability to meet stablecoin issuance standards, the institution’s financial condition, management quality, redemption policies and other safety and soundness considerations.
Once approved, the FDIC would serve as the primary federal regulator overseeing the subsidiary’s payment stablecoin activities.
The FDIC is the US agency responsible for insuring bank deposits and supervising member institutions. In recent years, it has taken a more active role in shaping how banks engage with digital assets, including reconsidering the use of reputational risk in bank supervision. As Cointelegraph reported in October, this shift could impact how financial institutions interact with crypto-related businesses.
UK regulator consults on crypto rules for exchanges, lending and DeFi
The United Kingdom’s Financial Conduct Authority (FCA) launched a series of consultations on proposed rules for digital asset markets, marking the next phase in the government’s effort to establish a comprehensive regulatory framework for crypto assets.
The proposals, published across three consultation papers, cover crypto trading platforms, intermediaries, staking, lending and borrowing, market abuse, disclosures and decentralized finance (DeFi). The FCA said consultation responses will be open until Feb. 12, 2026.
The regulator said the proposals aim to support innovation while ensuring that consumers understand the risks associated with crypto investment. It added that regulations should not eliminate risks entirely, but should ensure that participants operate responsibly and transparently.
“Our goal is to have a regime that protects consumers, supports innovation and promotes trust,” said David Geale, the FCA’s executive director for payments and digital finance, adding that industry feedback will help shape the final rules.
The consultations mark the next step in the UK’s push toward full “market structure” rules for crypto, moving beyond earlier requirements focused on financial promotions and Anti-Money Laundering compliance.
Crypto urges SEC to see good in privacy tools
Crypto industry executives urged the Securities and Exchange Commission to shift its thinking on blockchain privacy tools at its sixth crypto-focused roundtable on Monday, saying there are legitimate applications for them outside of criminal use.
StarkWare general counsel Katherine Kirkpatrick Bos participated in a panel discussion and told Cointelegraph that a major takeaway was that there shouldn’t be an assumption that those using and creating privacy tools are “overwhelmed by wrongdoers.”
“Why is the assumption that an individual needs to affirmatively prove that they are compliant or they’re using the tool for good, as opposed to it being the other way around?” she said.
In his opening remarks, SEC chair Paul Atkins said that if “pushed in the wrong direction, crypto could become the most powerful financial surveillance architecture ever invented,” with the government transforming it “into a financial panopticon.”
He added his agency must strike a balance and “make certain that Americans can use these [privacy] tools without immediately falling under suspicion.”
cointelegraph.com