Forex
Fed Proposes Reserve Requirements and Bank Rules for Stablecoin Issuers
The U.S. Federal Reserve has proposed two key guidelines for stablecoin issuers under the GENIUS Act, aiming to create a regulatory framework for this emerging market. The proposals focus on reserves and rules for banks issuing stablecoins.
The first proposal outlines reserve requirements for stablecoin issuers, suggesting they hold high-quality liquid assets such as short-term Treasury bills. The Federal Reserve also proposes standardized capital requirements to address payment stablecoin risks.
The second proposal addresses the application process for Board-supervised banks seeking to issue their own stablecoins. This includes submitting a business plan and financial information, along with other documents.