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Federal Reserve seeks public comment on two GENIUS Act stablecoin proposals

The proposals would require Board-supervised payment stablecoin issuers to fully back stablecoins with permissible reserve assets, including short-term Treasury bills.

Reported · Written up by our desk · Regulation

The Federal Reserve Board has requested public comment on two proposals aimed at setting up a regulatory framework for Board-supervised payment stablecoin issuers under the GENIUS Act, according to the Federal Reserve.

One proposal would require Board-supervised payment stablecoin issuers to fully back their stablecoins with permissible reserve assets, including short-term Treasury bills and other high-quality, liquid assets, and it would establish standardized capital requirements to address credit and operational risks tied to payment stablecoin activities.

The same proposal would also set out risk management standards under the law.

Separately, the second proposal would introduce rules for Board-supervised firms that safekeep assets backing payment stablecoins and would clarify the permissibility of stablecoin and rela, the Federal Reserve said.

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