Fed Proposes Stablecoin Reserve Rules Under GENIUS Act
The Federal Reserve Board has proposed rules for regulating payment stablecoin issuers under the GENIUS Act, which was signed into law by President Donald Trump in July 2025.
The proposals aim to establish a regulatory framework for board-supervised payment stablecoin issuers and include requirements for reserve assets, capital, risk management standards, and rules for safekeeping assets backing stablecoins.
One proposal would require that payment stablecoin issuers fully back their stablecoins with certain permissible reserve assets, while the other proposal would establish a tailored application process for board-supervised banks applying to issue payment stablecoins.
Federal Reserve Board Governor Michael S. Barr stated that public input on the proposals' provisions for reserve asset limitations and capital requirements will be useful in ensuring reliable payment instruments.