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Fed seeks public comment on stablecoin rules under GENIUS Act
The Fed says one proposal would require supervised stablecoin issuers to fully back tokens with reserve assets that include short-term Treasury bills and other highly liquid instruments.
Cointelegraph reports that the US Federal Reserve Board has asked for public comment on two proposals aimed at creating a regulatory framework for supervised payment stablecoin issuers under the GENIUS Act.
Under the first proposal, the Fed would require issuers to fully back their stablecoins with reserve assets, including short-term Treasury bills and other high-quality, liquid assets. The proposal also calls for standardized capital requirements covering credit and operational risks, along with risk-management standards.
A second proposal would set up an application process for banks seeking to work with the supervised payment stablecoin framework, after regulators missed a rule-making deadline under the GENIUS Act.
Cointelegraph notes the Fed’s request was made following the law’s passage, with the article stating the rule-making deadline was missed about a year after the GENIUS Act was signed.