Federal Reserve Proposes GENIUS Act Rules for Stablecoin Issuers

The Federal Reserve has proposed two new rules for stablecoin issuers under its supervision. The first rule sets operating requirements for issuers and firms holding their reserves, including full backing of payment stablecoins with permitted reserve assets such as short-term U.S. Treasury bills.

The second proposal addresses how an insured state member bank would apply to issue stablecoins through a subsidiary, requiring the bank to submit a business plan, financial information, and other material for assessment by the Fed.

Public comments are due 60 days after the proposals appear in the Federal Register. The Fed has not set a calendar deadline for completion of the rulemaking process.