Federal Reserve Proposes Stablecoin Issuer Rules Under GENIUS Act

The Federal Reserve is moving forward with implementing the GENIUS Act by proposing two rules for payment stablecoin issuers. The measures outline reserve, capital, and risk-management standards for supervised issuers.

The first proposal requires payment stablecoin issuers to fully back their tokens with high-quality, liquid assets such as short-term Treasury bills.

The second proposal sets up a formal application process for banks seeking to issue payment stablecoins. Banks would need to submit business plans and financial information, and the framework establishes procedures for appeals and hearings.

The public comment period closes 60 days after publication in the Federal Register.