Fed Proposes Regulatory Frameworks for Stablecoins Under GENIUS Act

The Federal Reserve Board has issued two proposals to create a regulatory framework for payment-oriented stablecoin issuers under its supervision.

The proposals are in line with the GENIUS Act, which aims to provide clear guidelines for stablecoins and their issuers. The Fed is soliciting public comments on these proposals, inviting stakeholders to provide their input before a final decision is made.

The move comes as stablecoins have gained popularity in recent years, with many investors turning to them as a low-volatility alternative to traditional cryptocurrencies.