Fed Proposes New Rules for Stablecoin Issuers Under GENIUS Act
The US Federal Reserve has proposed new rules for issuers of dollar-backed stablecoin tokens under the GENIUS Act. The framework would require full reserve backing, capital and risk-management standards, and oversight for banks safeguarding reserves.
According to the proposal, Fed-supervised payment stablecoin issuers would need to fully back their tokens with permitted reserve assets, including short-term US Treasury bills and other high-quality, liquid assets. This requirement aims to ensure that issuers maintain sufficient assets to support the value of stablecoins issued under the federal framework.
The proposed rules also introduce standardized capital requirements for stablecoin activities, addressing credit and operational risks associated with payment stablecoin issuance. Additionally, risk-management standards would be established for supervised firms involved in stablecoin activities.