Federal Reserve Proposes Rules for Board-Supervised Stablecoin Issuers

The GENIUS Act has introduced significant changes to stablecoin regulation in the US. Signed into law in July 2025, the act established a federal regulatory framework for payment stablecoins.

Regulators are now translating these requirements into proposed operational rules covering reserves, capital, supervision, and financial-crime controls. The Federal Reserve recently requested public comment on two proposals implementing parts of the GENIUS Act for Board-supervised payment stablecoin issuers.

The first proposal requires issuers to fully back outstanding payment stablecoins with permitted reserve assets, including short-term US Treasury bills and certain other high-quality, liquid assets. The GENIUS Act requires reserves backing outstanding stablecoins on at least a one-to-one basis, with permitted assets including US dollars, deposits at eligible financial institutions, certain short-term Treasuries, and Treasury-backed reverse repurchase agreements.

The Federal Reserve also proposed standardized capital requirements addressing certain credit and operational risks associated with payment stablecoin activities. Issuers would face risk-management standards, while Board-supervised firms safeguarding stablecoin reserve assets would be subject to specific requirements.