Forex
Fed Proposes Tighter Stablecoin Rules Under GENIUS Act
The Federal Reserve has proposed new regulations for bank-issued stablecoins as part of its implementation of the GENIUS Act. Under one proposal, issuers would be required to fully back their tokens with high-quality assets such as short-term Treasury securities and other liquid assets.
The proposal also establishes standardized capital requirements covering credit and operational risks, sets risk-management standards, and requires firms to safeguard stablecoin reserve assets.
A second proposal outlines a tailored application process for banks seeking to issue payment stablecoins, which would involve providing a business plan and financial information.