Fed Seeks Public Input on Stablecoin Regulation Proposals

The U.S. Federal Reserve has invited public feedback on two proposals that would create a framework for stablecoins issued by payment stablecoin issuers supervised by the Federal Reserve under the GENIUS Act.

The proposals concern reserves, capital, risk management, and custody, as well as the approval process for banks seeking to issue stablecoins.

The Fed's first proposal requires Board-supervised payment stablecoin issuers to fully back their stablecoins with permissible reserve assets, including short-term Treasury bills and certain other high-quality, liquid assets.