Fed Proposes Stablecoin Rules Under GENIUS Act

The Federal Reserve Board has proposed two rules to implement the $GENIUS Act for payment stablecoin issuers, seeking public comment on a framework that would require issuers to fully back their tokens with permissible reserve assets and set new capital and risk-management standards.

The proposals, released at 2:30 p.m. Eastern time on September 24, mark the central bank’s latest step to put its portion of the U.S. stablecoin law into effect and give banks a clearer path into the business of issuing dollar-pegged tokens.

The move hands banks and issuers a first concrete look at how the Fed intends to supervise a market that has grown into a core piece of digital-asset plumbing.