Federal Reserve Proposes Rules for Stablecoin Issuers Under GENIUS Act

The U.S. Federal Reserve has proposed new rules for stablecoin issuers as part of implementing the GENIUS Act, signed into law by President Donald Trump on July 18, 2025.

According to draft regulations published on September 24, payment stablecoins must be fully backed by eligible reserve assets, including short-term U.S. Treasury bills and other high-quality liquid instruments.

The first draft mandates that issuers maintain a 1:1 ratio between the value of their stablecoins and the value of their reserves, with immediate notification required if this ratio falls below 1:1.

The draft also outlines requirements for redeeming requests within two business days and introduces monthly reporting on reserve composition, which must be verified by a registered auditing firm.