Federal Reserve Proposes Stablecoin Rules Under GENIUS Act

The Federal Reserve has released two proposed rules for payment stablecoin issuers under the GENIUS Act, aiming to establish a federal framework for regulated digital dollars. The proposals would require payment stablecoins to be fully backed by reserve assets and introduce an approval process for issuers seeking to operate under this new framework.

The effort focuses on reserve requirements and issuer approval as key aspects of the Federal Reserve's proposed oversight of the stablecoin market. This move is intended to define how regulated payment stablecoins can be issued under the law, providing clarity for market participants.

The next step in this process involves a public comment period on these two proposals, allowing stakeholders to provide feedback and insights before the rules are finalized.