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Fed proposes reserve limits and capital rules for stablecoin issuers

The proposal would require payment stablecoin issuers to fully back tokens with short-term Treasury bills or other highly liquid assets.

Reported · Written up by our desk · Regulation

The Federal Reserve proposed reserve and capital measures for payment stablecoin issuers under the GENIUS Act, including reserve-asset limits and standardized capital requirements, according to The Block.

The central bank’s proposal would require stablecoins to be fully backed with short-term Treasury bills or other highly liquid assets.

Federal Reserve Governor Michael Barr supported the latest proposal, while also calling for more work on bank anti-money laundering oversight, The Block reported.

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