The Fed published proposals that would require full-reserve backing, capital and risk-management standards for Fed‑supervised payment stablecoin issuers, set rules for banks holding stablecoin reserves, and create an approval path for banks seeking to issue stablecoins. A 60‑day public comment period follows.
Payment stablecoin issuers supervised by the Federal Reserve would have to fully back tokens with permitted reserve assets such as short‑term U.S. Treasury bills and other high-quality liquid assets.
The Fed proposes standardized capital requirements and risk-management rules for supervised firms engaging in stablecoin activities.
Rules would govern Fed‑supervised banks that custody stablecoin reserves and clarify permitted stablecoin-related bank activities.
Reserve released proposed rules aimed at implementing the regulatory framework created by the GENIUS Act for dollar‑backed payment stablecoins. The proposals focus on three areas: the assets that must back stablecoins, capital and risk-management standards for supervised issuers, and the role and responsibilities of Fed‑supervised banks that hold or issue stablecoin reserves.
Full reserve backing. Under the draft rules, Fed‑supervised payment stablecoin issuers must fully back outstanding tokens with permitted reserve assets. The Federal Reserve named short‑term U.S. Treasury bills and other high‑quality liquid assets as examples of permitted reserves. The requirement is intended to ensure issuers maintain sufficient assets to support token value.
Capital and risk-management. The Fed would impose standardized capital requirements for stablecoin activities to address credit and operational risks tied to issuance. The proposal also sets risk‑management standards for supervised firms involved in those activities, though detailed operational elements are defined within the proposals.
Banks that custody reserves. The framework covers Fed‑supervised banks that safeguard assets backing stablecoins. It would establish requirements for custody providers and clarify which stablecoin‑related activities are permissible for supervised banks.
Board‑supervised banks that want approval to issue payment stablecoins, typically through a subsidiary. Applications must include a business plan and financial details. The proposal also describes procedures covering appeals, hearings, and final decisions on applications.
Regulatory timeline and participation
Register. These proposals are a step toward implementing the GENIUS Act's federal stablecoin framework and defining how banks and other supervised institutions may participate in the digital‑asset payments market.
Act into concrete regulatory elements: full reserve backing, capital and risk‑management standards, custody rules for banks, and an application pathway for bank issuers. The 60‑day comment period is the immediate window for industry feedback before any final rulemaking occurs.
The Federal Reserve has released two proposed GENIUS Act rules covering the assets that must back payment stablecoins and the approval process for banks seeking to issue them through subsidiaries. The Federal Reserve Board said in a Sep. 24 release…
The Federal Reserve has proposed two new rulemaking packages for payment stablecoin issuers under the GENIUS Act. Board-supervised issuers would have to fully back tokens with permitted reserve assets and meet standardized capital and risk-management requirements. The proposals are not final rules yet, with a 60-day pu
The Federal Reserve is proposing a rulebook for bank-issued payment stablecoins that gets strikingly specific. Basically, every $1 of tokens must be backed by at least $1 of permitted reserves, customers generally must be redeemable within two business days, and an issuer that stays short of required capital could ulti
The Fed’s proposal would set capital requirements, a two-day redemption window and new reserve disclosures as regulators implement the GENIUS Act.
The Federal Reserve’s two September 24 proposals describe more than the assets behind a dollar token. One proposal sets the terms for an insured state member bank to seek approval for a stablecoin subsidiary; the other would govern the issuer,…
The regulations aim to make these digital assets “foster payments improvements that benefit households and businesses,” Federal Reserve Gov. Michael Barr said.
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