Fed Proposes Reserve Rules for Stablecoin Issuers Under GENIUS Act
The US Federal Reserve has proposed new rules for stablecoin issuers under the GENIUS Act. The act, which became law in July 2025, aims to bring dollar-linked tokens under a consistent national regime.
The two draft proposals would apply to payment-stablecoin issuers already overseen by the central bank. One proposal focuses on the financial foundation of an issuer, requiring them to keep their tokens fully matched by a pool of allowed reserve assets at all times.
These holdings would be limited to highly liquid instruments such as short-dated Treasury bills and other high-quality assets that regulators view as capable of supporting a reliable peg. The proposal also imposes uniform capital standards aimed at credit and operational exposures, sets risk-management expectations, and clarifies related activities member banks may conduct without running afoul of existing banking restrictions.
A second, narrower proposal would create a specialized application path for insured state member banks that want a subsidiary to issue payment stablecoins. The review process would be predictable and focused on safety and soundness.