WASHINGTON – In a stunning display of regulatory malfeasance, the Federal Deposit Insurance Corporation (FDIC) Board of Directors has approved a notice of proposed rulemaking that would implement the application provisions under the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act).
The GENIUS Act, signed into law earlier this year, allows insured depository institutions to issue payment stablecoins through a subsidiary and to engage in certain related activities. But with this approval, the FDIC is essentially giving the green light for these institutions to engage in unregulated and potentially illicit activities.
Insiders claim that the FDIC’s move is a clear attempt to circumvent existing regulations and create a backdoor for financial institutions to engage in cryptocurrency dealings without proper oversight. ‘This is a recipe for disaster,’ said one source, who wished to remain anonymous. ‘The FDIC is essentially creating a Wild West environment for these institutions to operate in.’
The proposed rule would implement the requirements of section 5 of the GENIUS Act, which includes evaluating applications based on statutory factors, processing applications within specified timeframes, and establishing an appeal process for denied applications. But critics argue that these measures are woefully inadequate and will do little to prevent abuse.
Comments on the proposed rule will be accepted for 60 days after publication in the Federal Register. But with the FDIC’s reputation already in tatters, it remains to be seen whether the agency can be trusted to implement these regulations effectively.
In a statement, the FDIC claimed that the proposed rule is designed to ‘promote innovation and competition in the payment stablecoin market.’ But critics say that this is merely a smokescreen for the agency’s true intentions.
The implications of this move are far-reaching and could have devastating consequences for the financial industry as a whole. As one expert noted, ‘This is a ticking time bomb waiting to go off. The FDIC had better be prepared for the fallout.’
Related Federal Cases
- FDIC Pushes Back GENIUS Act Stablecoin Application Deadline · Maryland
- Christopher Guilford, Tax Refund Scheme, Sacramento CA, 2025 · Alabama
- Carie Hallford Sentenced to 18 Years for Body Decomposition Scheme,… · Texas
- Christopher Ferguson, Scheme to Inflate Order Numbers, New York NY,… · Ohio
- Gerardo Heriberto Nuñez Nuñez, Elder Fraud Scheme, Boston MA, 2026 · Washington
Key Facts
- Agency: FDIC
- Category: Financial Crimes
- Source: Official Source â†â€â€ÂÂ
ðŸâ€ÂÂÂ’ Get the grimiest stories delivered weekly. Subscribe free →
Browse More
All Federal Districts →All Districts →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News