Federal Reserve Proposes Stablecoin Issuer Rules Under GENIUS Act
The Federal Reserve is moving forward with implementing rules for payment stablecoin issuers under the GENIUS Act, a comprehensive US regulatory framework for stablecoins. The two proposed rules outline reserve and capital requirements for supervised issuers, as well as a formal application process for banks seeking to issue stablecoins.
According to the Federal Reserve Board, supervised payment stablecoin issuers must fully back their tokens with high-quality, liquid reserve assets such as short-term Treasury bills. This is part of a standardized framework that addresses credit and operational risks, setting risk-management standards for issuers under the new federal regime.
The second proposal creates an application process for banks seeking to issue payment stablecoins. Banks would need to submit business plans and financial information, while the framework also establishes procedures for appeals, hearings, and final determinations on applications.