Fed Proposes New Stablecoin Rules Under GENIUS Act

The US Federal Reserve has proposed new rules for stablecoin issuers, as required by last year's GENIUS Act. The proposal would require payment stablecoin issuers under Fed supervision to fully back their tokens with reserve assets like short-term Treasury bills.

The proposed rules also include capital requirements on stablecoin issuers to address credit and operational risks. If enacted, the new guidelines would introduce tailored application processes for banks that want to issue their own stablecoins.

The Fed will accept comments on the proposed new rules for 60 days after they are published in the Federal Register.