Federal Reserve Proposes New Rules for Stablecoin Issuers Under GENIUS Act

The U.S. Federal Reserve has proposed two draft rules for stablecoin issuers under the GENIUS Act, which aims to regulate the rapidly growing market. The drafts were published on September 24, 2026, and are open for public comment. According to Michael Barr, a member of the Federal Reserve Board, the new regulatory framework must ensure that a stablecoin can be reliably redeemed at face value even under conditions of financial market stress.

The first draft requires that issued payment stablecoins be fully backed by eligible reserve assets, such as short-term U.S. Treasury bonds and other high-quality liquid assets. The Fed also proposes establishing standardized capital requirements for issuers to cover credit and operational risks associated with the issuance of digital money.

The second draft regulates the procedure for banks to obtain authorization to issue payment stablecoins. A bank intending to launch its own stablecoin will be required to submit a business plan, financial information, and other documents to the regulator.