Fed Proposes New Stablecoin Rules Amid Growing Regulatory Scrutiny

The US Federal Reserve has proposed new rules for issuers of dollar-backed cryptocurrency tokens known as stablecoins. This move comes after last year's GENIUS Act established a federal regulatory framework for these tokens.

Under the proposal, payment stablecoin issuers under Fed supervision would be required to fully back their tokens with reserve assets such as short-term Treasury bills.

The proposed rules also include capital requirements on stablecoin issuers to address credit and operational risks. Additionally, guidelines for Fed-supervised banks that custody reserves on behalf of stablecoin issuers are outlined.