Forex
Fed Unveils Stablecoin Regulation Framework Ahead of GENIUS Act Deadline
The Federal Reserve has unveiled proposed regulations for stablecoin issuers, a significant step towards implementing the landmark GENIUS Act.
Under the primary proposal, Board-supervised issuers would be required to fully back payment stablecoins with high-quality liquid assets, primarily short-term Treasury bills.
The framework also introduces standardized capital requirements and prohibits issuers from offering yield or interest solely for holding digital tokens.
A secondary proposal outlines a tailored application process for insured state member banks seeking approval for subsidiaries to issue payment stablecoins.