In remarks at the American Bankers Association Washington Summit, Federal Deposit Insurance Corporation Chairman Travis Hill provided an update on the FDIC’s work to reshape its supervisory and regulatory toolkit across supervision, capital, liquidity, Bank Secrecy Act and anti-money laundering oversight, stablecoins and resolution preparedness. The speech previewed several forthcoming rulemakings with other U.S. banking agencies and flagged a planned GENIUS Act proposal that would clarify that payment stablecoins are not eligible for FDIC pass-through deposit insurance. Supervision reform work includes a joint proposal with the Office of the Comptroller of the Currency defining unsafe or unsound practices and matters requiring attention, examiner instructions to refocus examinations on material financial risks and legal violations, a lookback of outstanding supervisory recommendations, and interagency work on changes to the CAMELS rating system. Planned consumer compliance changes include shifting reviews toward identified noncompliance and consumer harm, narrowing pre-examination scoping, adding guardrails for off-cycle visitations, increasing the USD 10,000 aggregate consumer-harm threshold that drives the most severe violations, and avoiding retroactive restitution tied to changed supervisory expectations. On regulatory capital, proposed revisions to the Community Bank Leverage Ratio are intended to be finalized in the near future, and banking agencies plan to issue two risk-based capital proposals later this month: one to implement the 2017 Basel agreement with U.S. deviations, including a single-stack approach and less punitive operational and market risk frameworks, and a second to increase risk sensitivity for all banks other than Community Bank Leverage Ratio banks, particularly for residential mortgage, consumer and corporate lending, with aligned securitization and collateral recognition changes across both proposals. For liquidity, Hill highlighted potential Liquidity Coverage Ratio changes to better reflect acute short-term stress, including allowing capped recognition of Federal Reserve borrowing capacity, and the FDIC plans to publicly release findings in the coming weeks from a transaction-level study of depositor behavior at the three banks that failed in 2023. In BSA/AML, the FDIC is developing with the Treasury Department a proposal intended to better deliver the Anti-Money Laundering Act of 2020’s risk-focused objectives and to encourage adoption of AI and other technology in compliance and customer identification. GENIUS Act stablecoin rulemakings are also underway, including a planned proposal to set prudential standards for FDIC-supervised payment stablecoin issuers and to confirm that GENIUS Act payment stablecoins are not eligible for pass-through insurance, alongside deposit insurance clarifications for tokenized deposits. Resolution-related initiatives include an expected proposal later this spring to revise the insured depository institution resolution planning rule, a planned rescission of the FDIC’s 2009 policy statement governing private investors’ participation in failed-bank acquisitions, and exploration with other banking agencies of an emergency shelf-charter pathway for nonbanks to bid in a sudden failure scenario.
Federal Deposit Insurance Corporation 2026-03-11
Federal Deposit Insurance Corporation chair outlines regulatory toolkit reforms including plan to deny pass-through insurance for payment stablecoins
FDIC Chairman Travis Hill, at the American Bankers Association Washington Summit, outlined efforts to enhance the supervisory and regulatory framework, including rulemakings on capital, liquidity, and stablecoins. Initiatives involve revising the Community Bank Leverage Ratio, adjusting the Liquidity Coverage Ratio, and developing proposals with the Treasury Department to advance the Anti-Money Laundering Act of 2020. Additionally, the FDIC plans to clarify that payment stablecoins are not eligible for pass-through deposit insurance under the GENIUS Act.